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Investing.com — U.S. stocks were lower after bank executives talked about a slowing economy.
At 10:21 ET (15.21 GMT), the Dow Jones Industrial Average was down 21 points or 0.1%, while the S&P 500 was down 0.3% and the NASDAQ Composite was down 0.2%.
Big banks kicked off earnings season, with the two biggest companies topping expectations. JPMorgan Chase & Co (NYSE:JPM) noted softer investment banking activity, with revenue in the business down 57% from one year ago. CEO Jamie Dimon said that while the economy “currently remains strong,” he sees challenges ahead.
Those challenges include the effect of the war in Ukraine, Dimon said, along with “the vulnerable state of energy and food supplies, persistent inflation that is eroding purchasing power and has pushed interest rates higher” and the Federal Reserve’s work to tame inflation.
JPMorgan has $2.3 billion in its provision for credit losses, a move driven by a “modest deterioration in the firm’s macroeconomic outlook, now reflecting a mild recession in the central case” it said.
Bank of America Corp (NYSE:BAC) also beat expectations. CEO Brian Moynihan, noting the increasingly slowing economic environment, said “We believe we are well positioned as we begin 2023 to deliver for our clients, shareholders and the communities we serve.”
Shares of JPMorgan fell 1.6% and shares of Bank of America shares fell 2.6%.
Consumers are feeling better about the economy, however. Michigan consumer sentiment for January measured at a higher than expected 64.6, the highest reading in eight months.
Crypto.com said it was cutting 20% of its jobs after the collapse of the crypto exchange FTX in November. And Tesla Inc (NASDAQ:TSLA) stock fell 3.6% after Guggenheim cut its rating to sell from neutral.
Oil rose. Crude Oil WTI Futures was up 0.5% to $78.81 a barrel, while Brent Oil Futures crude was up 0.4% to $84.36 a barrel. Gold Futures rose 0.8% to $1,914.
