Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

US STOCKS-Wall St dips after bank results; energy curbs losses

Published 10/15/2009, 01:06 PM
Updated 10/15/2009, 01:09 PM
CVX
-
C
-
NOKIA
-
GOOGL
-
IBM
-
GC
-
CL
-

* Goldman Sachs, Citigroup down after results

* Energy stocks rise after EIA inventory data

* Jobless claims fall to nine-month low

* Dow dips 0.1 pct, S&P off 0.2 pct, Nasdaq off 0.4 pct (Updates to midday, changes byline)

By Ryan Vlastelica

NEW YORK, Oct 15 (Reuters) - U.S. stocks slipped on Thursday after Goldman Sachs and Citigroup reported quarterly results, but losses were limited after positive oil inventory data helped energy shares.

Goldman's and Citigroup's results, while better than expected, fell short of the lofty standard set by JPMorgan Chase on Wednesday. That company's results far exceeded expectations and drove major indexes to 2009 highs, with the Dow Jones industrial average breaking above 10,000 for the first time in a year.

Goldman's earnings nearly quadrupled, largely due to strong trading results. Citigroup's third-quarter loss was narrower than expected, but the company took $8 billion in credit losses.

"JPMorgan's results raised the bar for expectations and that spread to a number of financials," said Alan Gayle, senior investment strategist at RidgeWorth Investments in Richmond, Virginia.

"The market was looking for strong results and it got that and more, but it decided to sell on the good news at Goldman."

Goldman shares fell 2.1 percent to $188.40 while Citigroup shed 5.4 percent to $4.74. The KBW Banks index lost 1.6 percent while the S&P Financial index was the top percentage decliner among S&P sectors, down 1.4 percent.

Crude oil rose 2.7 percent to $77.19 per barrel, erasing early losses after data from the Energy Information Administration showed gasoline and distillate inventories fell sharply in the last week.

The data limited losses in the markets and lifted the S&P Energy index 0.9 percent. Chevron Corp shares gained 1.1 percent to $76.26.

The Dow Jones industrial average dropped 12.47 points, or 0.12 percent, to 10,003.24. The Standard & Poor's 500 Index fell 1.89 points, or 0.17 percent, to 1,090.13. The Nasdaq Composite Index lost 7.60 points, or 0.35 percent, to 2,166.61.

Nokia Corp results also dented confidence in the earnings season. Shares sank 12 percent to $13.61 on the New York Stock Exchange after it unexpectedly reported a third-quarter loss.

The results overshadowed economic data that added evidence to the argument that the economy was on the mend.

The number of new workers filing new claims for jobless benefits fell to a nine-month low, while the September Consumer Price Index rose marginally, as expected.

The next wave of quarterly results comes after the market closes, with such tech bellwethers as International Business Machines Corp, Google Inc and Advanced Micro Devices scheduled to report.

IBM, a Dow component, fell 1.2 percent to $126.87 on the NYSE, while Google was down 0.7 percent at $531.71 on Nasdaq, and AMD dropped 2.4 percent to $6.10, also in NYSE trading. (Editing by Jan Paschal)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.