NEW YORK (AP) — U.S. stock indexes wavered in Monday morning trading, weighed down by losses for bank stocks.
Goldman Sachs dropped to one of the largest losses in the S&P 500 index after saying it’s off to a “muted start to the year,” though its earnings for the first quarter still beat analysts’ expectations. Citigroup also fell following its report, as banks lead off this quarter’s earnings season.
Expectations are low for the market in general, and analysts are expecting S&P 500 companies in upcoming weeks to report the first drop in earnings in nearly three years.
Still, stocks have enjoyed a hot start to the year as pessimism about the U.S. economy’s chances of avoiding recession has eased, and the Federal Reserve’s decision to hold steady on interest rates. The S&P 500 remains just 1% off its record high set in September.
Optimism has grown that the U.S. and China can resolve their trade dispute. U.S. Treasury Secretary Steven Mnuchin said Saturday that the world’s two largest economies were moving closer to an agreement.
Treasury yields, which tend to move in sync with expectations for the economy, have generally risen in recent weeks.
KEEPING SCORE: The S&P 500 was down 0.1%, as of 10:05 a.m. Eastern time. It flipped from a small gain of 0.1% at the open to modest losses of as much as 0.2%.
The Dow Jones industrial average fell 35 points, or 0.1%, to 26,377, and the Nasdaq composite slipped 0.1%.
BANKING ON MORE: Goldman Sachs reported stronger profit for the first quarter than Wall Street expected, but lighter trading activity during the first three months of the year meant that its revenue fell short of analysts’ estimates. Its shares sank 2.1%.
Citigroup also reported stronger profit for the first three months than analysts expected,