Shaky results from Wells Fargo and other banks hit US stocks
NEW YORK (AP) — U.S. stock indexes are slightly lower Friday morning as investors aren’t finding much to get excited about in second-quarter reports from big banks like JPMorgan and Wells Fargo. AT&T stock is falling after the Department of Justice asked a court to overturn its purchase of Time Warner. Industrial companies and retailers are higher, and stocks are still on track for their second consecutive week of solid gains following a modest losing streak.
KEEPING SCORE: The S&P 500 index fell 4 points, or 0.1 percent, to 2,794 as of 10 a.m. Eastern time. The Dow Jones Industrial Average lost 17 points, or 0.1 percent, to 24,907. The Nasdaq composite dipped 9 points, or 0.1 percent, to 7,814 after it closed at a record high on Thursday. The Russell 2000 index of smaller-company stocks was little changed at 1,691. More stocks rose than fell on the New York Stock Exchange.
US BANKS: Banks traded lower. The fallout from Wells Fargo’s phony accounts scandal continued to harm its business and the largest U.S. mortgage lender posted a smaller profit than analysts expected. Its stock gave up 3.6 percent to $54. Citigroup fell 2.5 percent to $66.83 after it reported weak revenue growth. JPMorgan Chase fared better, but still lost 1.2 percent to $105.55. While bank profits are surging this year, much of the growth has come from last year’s corporate tax cuts rather than a big improvement in their businesses.
EARLY GAINERS: V.F. Corp. rose 2.4 percent to $85.71 and Lowe’s climbed 2.2 percent to $100.48 as retailers led the way early on. Starbucks gained 1.8 percent to $51.17. Among industrial companies, United Rentals jumped 2.2 percent to $155.60 and Lockheed Martin added 1.4 percent to $317.62.
NOT SO FAST? AT&T dropped 1.6 percent to $31.72 after the Justice Department moved to challenge its recent purchase of Time Warner. The $85 billion deal closed last month after a federal judge ruled that it did not violate antitrust law, but the government is asking a higher court to reconsider that ruling.