Hey there, readers!
It's been an eventful week in the stock market, with some mixed results and earnings forecasts. Let's dive in and see what's been happening.
On Friday, U.S. stocks saw mixed results, with the Dow closing down while the Nasdaq and S&P 500 managed slight gains. Eight S&P 500 companies reported results for the December-ending quarter, and unfortunately, five of those stocks lost ground by the closing bell. The worst performer was Delta Air Lines, whose shares plunged nearly 9% after the company lowered its earnings forecast for this year, despite beating projections for the latest quarter. Rising oil prices also didn't help, as U.S. crude prices rose 1% on worries about escalation of armed conflict in the Middle East. Delta, United, and American Airlines were the biggest decliners on the S&P 500 for the day.
But it wasn't just the airlines that had a rough start to the earnings season. Banks also saw their stocks drop following their own results. JPMorgan Chase, Wells Fargo, and Bank of America all experienced declines, while Citigroup managed a small gain after announcing plans to cut 20,000 jobs. The outlook for net interest income, a measure of what banks earn on yield from cash, loans, and securities, minus interest costs, was muted. Banks are looking at a more difficult environment for loans in 2024.
Despite the mixed results on Friday, the S&P 500 still managed to pick up about 1.8% for the week, while the Nasdaq held onto a 3% weekly gain. In other words, 2024 is about back to where it started.
That's all for now, folks! Stay tuned for more market updates and have a great week ahead!
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