Stocks finished mixed on Friday, shedding earlier gains as big bank results failed to lift hopes for a robust quarterly earnings season. But the S&P closed the week in positive territory after a rough start to 2024.
The Dow Jones Industrial Average (^DJI) lost 0.3%, or more than 100 points. The benchmark S&P 500 (^GSPC) gained 0.1%, while the tech-heavy Nasdaq Composite (^IXIC) closed just over the flatline.
Wall Street lenders kicked off fourth quarter earnings, seen as a crucial chance for stocks to recover from this year’s losses so far. JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC) all posted decent results on Friday. But the latter two saw shares fall as they failed to settle nerves about potential pain ahead.
The markets punished airline stocks to cap the week. United Airlines (UAL) fell by more than 10% while American Airlines (AAL) and Delta (DAL) decreased close to 9%. Delta reported earnings earlier in the day and while the company beat estimates for the top and bottom lines, it did trim its 2024 earnings forecast. Elsewhere, Meta (META) nearly completed a stunning reversal, reaching a 52-week high in intra-day trading, climbing back from a staggering drop in its stock price in 2022. The social media company is within 2% of its all-time high.
Also in focus, oil prices jumped more than 1% after the US and its allies launched airstrikes against Houthi rebels in Yemen, drawing threats of reprisals from the Iran-backed group behind Red Sea attacks on shipping. Brent futures (BZ=F) traded around $80 a barrel, while West Texas Intermediate futures (CL=F) were just under $73.
Meanwhile, investors are looking for more insight into price pressures after the December CPI reading came in hotter than expected on Thursday. In a turnabout on Friday, the Producer Price Index showed an unexpected fall in prices last month, boosting hopes that inflation will continue to cool in the months ahead.