Wall Street falls as bank stocks weigh
U.S. stocks were down on Wednesday as financial stocks fell after JPMorgan and Bank of America hinted at revenue weakness in the current quarter.
JPMorgan (N:JPM) Chief Financial Officer Marianne Lake said the decline stemmed from lower volatility compared with a year ago when the United Kingdom was preparing to vote on Brexit.
Bank of America (N:BAC) Chief Executive Brian Moynihan said second-quarter earnings would be hurt by a drop in trading revenue, lower-than-expected interest rates and the sale or shuttering of certain assets.
Seven of the 11 major S&P sectors were lower, with the financial index’s (SPSY) 1.3 percent fall leading the decliners.
Financials, which have largely outperformed the broader market on bets of fiscal stimulus and simpler banking regulations under President Trump, are on track to decline 0.7 percent so far this year.
JPMorgan (N:JPM) was down 2 percent on Wednesday. Goldman Sachs (N:GS) fell 3 percent and was the biggest drag on the Dow. Bank of America (N:BAC) was down 2.2 percent.
At 10:40 a.m. EDT, the Dow Jones Industrial Average (DJI) was down 46.17 points, or 0.22 percent, at 20,983.3, the S&P 500 (SPX) was down 5.15 points, or 0.21 percent, at 2,407.76 and the Nasdaq Composite (IXIC) was down 27.40 points, or 0.44 percent, at 6,175.79.