U.S. stocks slipped on Monday, weighed by losses in financial stocks as earnings from Wall Street’s big banks Goldman Sachs and Citigroup failed to impress.
FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., April 9, 2019. REUTERS/Brendan McDermid 15 Apr 2019 09:15PM(Updated: 16 Apr 2019 12:45AM) Share this content
REUTERS: Wall Street’s main indexes fell on Monday, following a rally in the previous session that put the S&P 500 within striking distance of its record high, as underwhelming results from Goldman Sachs and Citigroup pressured financial stocks.
The sector fell for the first time in four sessions, down 0.75per cent, dragged lower by a 3.2per cent tumble in Goldman Sachs Group Inc and a 0.7per cent dip in Citigroup Inc after the banks missed revenue estimates.
The S&P banking index fell 1.12per cent, also weighed down by a 1.6per cent drop in JPMorgan Chase. Bank of America dipped 1.4per cent ahead of results on Tuesday.
“With less-than-stellar Goldman results, despite the bottom-line beat, it’s not necessarily surprising to see financials pulling back a little bit,” said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
“Earnings and guidance need to be better than estimates for the market strength to continue given the levels we are at now.”
Monday’s reports come in contrast to JPMorgan’s upbeat earnings on Friday that eased worries of first-quarter earnings season slamming the brakes on Wall Street’s big rally back from last year’s slump.
The benchmark S&P 500 index is just about 1per cent away from its September record closing high.
On trade discussions, Reuters reported that U.S. negotiators have tempered demands that China curb industrial