Active Stocks
Fri Apr 19 2024 15:56:00
  1. Tata Steel share price
  2. 162.10 1.31%
  1. Tata Motors share price
  2. 963.20 -0.84%
  1. NTPC share price
  2. 350.90 -0.14%
  1. ITC share price
  2. 424.80 1.40%
  1. Power Grid Corporation Of India share price
  2. 281.70 0.54%
Business News/ Markets / Stock Markets/  Global market update: US stocks end flat as earnings offset inflation data
BackBack

Global market update: US stocks end flat as earnings offset inflation data

Wall Street ends flat after mixed bank earnings and cooler-than-expected inflation news; Dow Jones down 0.31%, Nasdaq up 0.02%, S&P 500 up 0.08%.

US producer prices index unexpectedly falls in December; Bank of America profit shrinks, Wells Fargo warns of drop in net interest income, Citigroup reports Q4 loss, JPMorgan forecasts higher interest income, UnitedHealth and Delta Air Lines decline. (Photo: AFP)Premium
US producer prices index unexpectedly falls in December; Bank of America profit shrinks, Wells Fargo warns of drop in net interest income, Citigroup reports Q4 loss, JPMorgan forecasts higher interest income, UnitedHealth and Delta Air Lines decline. (Photo: AFP)

Global market update: Following mixed bank earnings offset cooler-than-expected inflation news that buoyed hopes for interest-rate cuts from the Federal Reserve, US stock market ended flat after trading range-bound throughout the Friday session. Dow Jones index finished 0.31 per cent lower, tech-heavy Nasdaq ended 0.02 per cent higher while S&P 500 added 0.08 per cent. Advancing issues outnumbered decliners by a 1.4-to-1 ratio on the NYSE while on Nasdaq, decliners outpaced advancers by a 1.1-to-1 ratio on the Nasdaq.

For the week, the Dow gained 0.34 per cent, the S&P 500 rose 1.84 per cent and the Nasdaq climbed 3.09 per cent. The gains for the S&P were the biggest weekly percentage rise since mid-December and for the Nasdaq, the largest since early November.

Also Read: Tata Consumer to consider fundraising via debt issue. Details here

On Friday, data showed US producer prices index (PPI) data unexpectedly fell in December as the cost of goods such as food and diesel fuel declined, while prices for services were unchanged for a third consecutive month, in contrast to Thursday's hotter-than-expected consumer inflation reading.

Michael Green, chief strategist at Simplify Asset Management in New York said, "The PPI tells us something a little bit different than the CPI," adding, "It raises the probability that the Fed has the free and clear to decide to cut interest rates and the equity market doesn't care all that much as long as rates are not pushing significantly higher."

Also Read: Gold rate today under pressure as rupee hits 4-month high. Opportunity to buy?

Bank of America fell 1.06% after its fourth-quarter profit shrank as the lender took $3.7 billion in one-off charges, while Wells Fargo's warning of a 7 per cent to 9 per cent drop in net interest income in 2024 sent the bank's shares down 3.34 per cent.

But Citigroup rose 1.04 per cent after reporting a $1.8 billion fourth-quarter loss and saying it expected further job cuts.

JPMorgan Chase edged 0.73 per cent lower after reporting its best-ever annual profit and forecasting higher-than-expected interest income for 2024.

The Dow fell, largely due to a 3.37 per cent decline in UnitedHealth after the company reported higher-than-expected medical costs, accounting for about 120 points of downside pressure to the index.

Also Read: Tech stocks power market to new high

Delta Air Lines tumbled 8.97 per cent after the carrier scaled down its annual profit outlook.

Tesla lost 3.67 per cent after trimming prices of some new China models and plans to suspend most car production at its factory near Berlin.

(With inputs from Reuters)

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decision.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 13 Jan 2024, 10:10 AM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App