July 14 (UPI) — The Dow Jones Industrial Average fell 142 points Thursday, extending a down week as investors took in disappointing earnings data from major banks.
The blue-chip Dow closed the day down 0.46%, after having fallen by as much as 628 points in session lows, while the S&P 500 dropped 0.3% and the Nasdaq Composite eked out a 0.032% gain after each sliding more than 2% earlier in the session.
Thursday’s declines came after JPMorgan Chase stock fell 3.49% after the bank reported a 28% decline in second-quarter profit while also adding to reserves for bad loans and halting its share buybacks.
“In our global economy, we are dealing with two conflicting factors, operating on different timetables,” JPMorgan Chase CEO Jamie Dimon said in the bank’s quarterly report. “The U.S. economy continues to grow and both the job market and consumer spending, and their ability to spend, remain healthy.”
Morgan Stanley also reported results that missed analysts’ expectations, with shares falling 0.39%.
Bank stocks were down across the board including Goldman Sachs, which is set to report earnings Monday, posting a 3.05% loss, while shares of Citigroup dropped 3.01% and Wells Fargo fell 0.82%.
“If the banks are a barometer of the whole economy, as well as what we’re likely to get from other earnings reports going forward, it’s going to be an ugly quarter,” Sam Stovall, chief investment strategist at CFRA said.
Energy, materials and financials were among the S&P 500’s worst-performing sectors Thursday with shares of Mosaic dropping 5.7%, while EOG Resources dropped 3.57%, Diamondback Energy slid 3.51% and Halliburton lost 3.43%.
Oil prices were also on the decline, as West Texas Intermediate crude hit its lowest level since February.