Dow, S&P 500 fall after bank earnings disappoint

NEW YORK (AFP) – Wall Street stocks finished mostly lower on Thursday (July 14) following another troubling inflation report as disappointing banking earnings set a downcast tone about the second-quarter earnings season.

For the second day in a row, US indices tumbled after data showed an acceleration in wholesale prices instead of the hoped-for moderation.

But markets rallied somewhat from session lows as some investors grabbed a bargain-hunting opportunity.

The Dow Jones Industrial Average lost 0.5 per cent, or about 140 points, to finish at 30,630.17 after falling more than 600 points earlier in the day.

The broad-based S&P 500 dropped 0.3 per cent to 3,790.38, while the tech-rich Nasdaq Composite Index edged up less than 0.1 per cent to 11,251.19.

The Labour Department reported that US producer prices rose 1.1 per cent, topping expectations, on a 10 per cent surge in energy prices, more than double the increase in May.

US Federal Reserve Governor Christopher Waller, who has previously backed another 75 basis point interest rate hike at the upcoming policy meeting, signaled he was open to an even larger full percentage point increase, if upcoming economic data comes in too strong.

Shares of JPMorgan Chase fell 3.5 per cent after the big US bank reported a 28 per cent drop in quarterly earnings and set aside additional funds in case of bad loans in results that missed analyst expectations.

Food company Conagra Brands slumped 7 per cent on disappointment over the company’s earnings forecast.