March 8, 2014
Dow, S&P 500 end down; bond trading revenues bites bank profits
The Dow and S&P 500 slipped with the S&P retreating from the previous session's record high, after earnings from Goldman Sachs and other banks disappointed investors.
Financials were the biggest drag on the market after both Goldman Sachs Group Inc and Citigroup Inc reported that lower bond trading revenue took a bite out of their quarterly profits. Goldman's earnings fell 21 percent.
Citigroup's profit missed expectations.
The results followed fairly positive reads on the financial sector from JPMorgan Chase & Co, Bank of America Corp and Wells Fargo & Co earlier this week.
Goldman's stock slid 2 percent to close at $175.17. It was the biggest drag on the Dow. Citigroup's stock dropped 4.4 percent to end at $52.60 and was the biggest negative for the S&P 500.
The S&P financial sector index fell 0.6 percent, making it the biggest loser among the 10 sectors in the S&P 500.
The S&P 500 index surged 1.6 percent over the previous two sessions on results and economic data to close at a record high on Wednesday, its first since Dec. 31.
The Dow Jones industrial average fell 64.93 points or 0.39 percent, to end at 16,417.01. The S&P 500 slipped 2.49 points or 0.13 percent, to finish at 1,845.89.
The Nasdaq Composite added 3.805 points or 0.09 percent, to close at 4,218.688.
After the closing bell, shares of Intel tumbled 2.4 percent to $25.90 following its results. In regular trading, Intel had slipped 0.5 percent to end at $26.54.
European equities edged lower to steady just below a 5-1/2-year high, hurt by a string of losses in the retail sector after corporate reports, though mining stocks offers some support.
In commodities markets, Brent crude oil fell below $107 a barrel as expectations of more supply from the Middle East and North Africa outweighed news of a large drop in US crude stockpiles.
Huge volumes of crude from Iran and Libya have been blocked by political and civil disputes, but both countries may soon be able to send more into markets that are already well supplied.