Stocks tumble on Wall Street, head for another weekly loss

Stocks fell in afternoon trading on Wall Street on Friday, keeping major indexes on track for their second week…

Stocks fell in afternoon trading on Wall Street on Friday, keeping the major indexes on track for their second consecutive weekly decline.

The S&P 500 fell 0.4% at 12:16 p.m. EST. The Dow Jones Industrial Average fell 277 points, or 0.8%, to 35,835 and the Nasdaq fell 0.1%.

The banks were the most important weight on the market. JPMorgan Chase tumbled 5.5% after it said its profits fell 14% in the last quarter from a year earlier as its business operations slumped. Citigroup fell 2.2% after reporting its latest results.

A wide range of retailers and other businesses that rely on direct consumer spending also fell following a weak retail sales report for December. Home Depot fell 3.3% and Whirlpool 4.3%.

Technology stocks gained ground and tempered market losses.

US crude oil prices rose 1.2% and helped energy stocks rise. Chevron was up 1%.

Bond yields rose. The 10-year Treasury yield rose to 1.76% from 1.70% on Thursday evening.

The Commerce Department said retail sales fell 1.9% in December after Americans cut spending in the face of product shortages, rising prices and the appearance of the omicron variant.

“That’s a lot of bad things happening in a short time in one of the strongest retail months of the year,” said Robert Cantwell, portfolio manager at Upholdings.

The disappointing retail trade report is the latest in a series of economic reports this week that have raised concerns about inflation and its impact on businesses and consumer spending.

The Labor Department reported Wednesday that consumer inflation jumped at the fastest pace in nearly 40 years last month, a 7% spike from a year earlier that lifted household spending and weighed on wage gains. The government agency also reported on Thursday that prices at the wholesale level rose by a record 9.7% for the whole of 2021.

Rising prices have prompted companies to pass on more costs to consumers. Consumers cut spending in department stores, restaurants and online due to rising prices and supply shortages.

Businesses are also feeling the impact of inflation. Paint maker Sherwin-Williams fell 1.9% after reporting disappointing fourth-quarter results due to raw material costs and supply chain issues. Boston Beer, which makes Sam Adams beer, fell 6.8% after it cut its profit forecast due to supply chain issues.

Concerns about persistently rising inflation are also prompting the Federal Reserve to scale back bond purchases and consider raising interest rates sooner and more often than Wall Street expected less than a decade ago. ‘a year.

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