U.S. stock benchmarks turned lower Wednesday afternoon, as Congress and the White House wrangled over further pandemic aid and big banks kicked off third-quarter corporate earnings season with a cautious tone.
How are stock benchmarks performing?
The Dow Jones Industrial Average DJIA, -0.39% slumped 150 points, 0.5%, to trade near 28,530, while the S&P 500 SPX, -0.57% index fell 22 points, 0.7%, at 3,488. The Nasdaq Composite COMP, -0.85% dropped 109 points, or 0.9%, at 11,754.
What’s driving the market?
Wednesday marked the second full day of corporate quarterly earnings reports from the likes of Bank of America BAC, -4.22%, Goldman Sachs GS, +1.19% and Wells Fargo WFC, -5.41% as investors looked for signs of economic recovery.
Bank of America reported $20.45 billion in total revenue, missing the $20.8 billion estimate of analysts surveyed by Refinitv, while income was at $4.9 billion, or 51 cents a share, from $5.8 billion, or 56 cents a share, in the year-ago period, but above the FactSet consensus of 49 cents a share.
Meanwhile, Goldman reported better-than-expected earnings and revenue that helped to boost the investment bank’s shares in premarket trade. The bank reported earnings per share of $9.68 per share, compared with $5.57 expected by Refinitiv’s consensus estimates, while revenue came in at $10.78 billion, versus consensus estimates for $9.46 billion.
“Bank CEOs were a little bit more cautious than some people were expecting them to be,” said Matt Peron, director of research at Janus Henderson, in an interview