U.S. Stocks Slide as Gains in Banks Fade, Energy Shares Decline

U.S. equities slid as investors studied banking results from JPMorgan Chase and Citigroup. In Europe, stocks declined for the third time this week as banks fell.

The S&P 500 lost 0.2 percent to 2,340 at 12:25 p.m. in New York. The benchmark slipped 0.4 percent on Wednesday, closing below its 50-day moving average for the first time since November, as investors assessed geopolitical developments from France to Russia and Korea. The Dow Jones Industrial Average lost 43 points to 20,548 on Thursday.

U.S. Market

  • Nine of 11 sectors lower 
  • Material and energy shares lagging market most, with energy down 1% as oil drops 0.3%
  • Financial shares slip as gains of at least 0.7% in PNC and Citigroup offset decline in Wells Fargo, down 2.1%
  • VIX down to 15.2
  • Volume movers: Rockwell Collins (COL), Hanesbrand (HBI), Wells Fargo (WFC) trading highest above 30-day avg volume
  • Bulls in American Association of Individual Investors weekly survey inched up to 29%, just above a 5-month low of 28% hit last week; bull-bear spread remained negative, at minus 8%
    • Trump says China not a currency manipulator in Wednesday interview with Wall Street Journal
    • Trump finding little support among his Asian allies --both publicly and behind the scenes -- as he weighs a military attack on North Korea after unilaterally firing missiles on Syria
    • Wholesale prices in the U.S. declined in March for the first time since August 2016, a sign broader inflation will accelerate only gradually
    • Bloomberg Consumer Comfort Index climbed for the sixth week in seven as Americans became more upbeat about the U.S. economy than at any time since 2001
    • Jobless claims fell by 1,000 to 234,000 (estimate: 245,000) in the week ended April 8
  • EARNINGS (S&P 500):
    • Next earnings on Monday April 17, including Netflix (NFLX) and M&T Bank (MTB)

Europe Market

  • The Stoxx Europe 600 Index retreated 0.4% at the close, after advancing to a 16-month high in the previous session
    • All but four industry groups declined, with banks extending losses into a fifth day
  • CAC 40 down 0.6% as DAX loses 0.4%
  • The dynamics of the French election have taken another turn, with many possible outcomes including a second round involving far-left and far-right candidates, JPMorgan strategist Marko Kolanovic wrote in a note Wednesday, calling it increasingly reminiscent of Brexit and the U.S. election

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