US Indexes Mixed Tuesday After Bank Earnings

The Dow Jones Industrial Average closed at 28,939.67 on Tuesday with a gain of 32.62 points or 0.11%. The S&P 500 closed at 3,283.15 for a loss of 4.98 points or -0.15%. The Nasdaq Composite closed at 9,251.33 for a loss of 22.60 points or -0.24%. The VIX Volatility Index was higher at 12.58 for a gain of 0.26 points or 2.11%.

Tuesday’s market movers

Big bank earnings led top headlines Tuesday. JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C) reported the following results:

JPMorgan: Revenue of $28.3 billion increased 8.4% year over year and beat estimates by $610 million. Fourth-quarter GAAP earnings of $2.57 per share beat estimates by 22 cents. Wells Fargo: Revenue of $19.86 billion decreased 5.3% year over year and missed estimates by $250 million. Fourth-quarter GAAP earnings of 60 cents per share missed estimates by 52 cents and non-GAAP earnings of 93 cents missed estimates by 17 cents. Citigroup: Revenue of $18.38 billion increased 7.4% year over year and beat estimates by $430 million. Fourth-quarter GAAP earnings of $2.15 per share beat estimates by 32 cents and non-GAAP earnings of $1.90 beat estimates by 7 cents.

Strong banking results were driven by comments suggesting a strong economy and strong consumer activity. The Dow Jones ended higher, while the S&P 500 and Nasdaq fell. Despite strong bank results, data releases did show a decline of approximately 2% in earnings expected for the quarter across S&P 500 companies. Investors were also somewhat concerned about Wednesday’s “phase one” signing with China, which is focused on Chinese import commitments but light on the key economic reforms President Trump has been pushing for. Moreover, impeachments developments are suggesting that the Senate will start an impeachment trial next Tuesday.

Economic reports affecting market trading included the following:

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