US stocks ended mixed Friday, marking a second consecutive weekly decline as disappointing financials from big banks dampened market sentiment at the start of fourth-quarter earnings season and retail sales data for December failed to meet Street expectations.
The S&P 500 was up 0.1% to 4,662.85 and the Dow Jones Industrial Average fell 0.6% to 35,911.81, while the tech-heavy Nasdaq Composite was 0.6% higher to 14,893.75 Friday. Energy and technology fared best among the sectors while real estate and financials lagged.
For the week, the S&P 500 and the Nasdaq were both down 0.3%, while the Dow dropped 0.9%.
The 10-year US Treasury yield jumped 7.9 basis points to 1.79%, almost reaching the 52-week high.
West Texas Intermediate crude oil jumped 2.6% to $84.23 a barrel.
Shares of JPMorgan Chase & Co. (JPM) slumped 6.2% after the lender released fourth-quarter results. JPMorgan's Q4 revenue missed Wall Street's estimates as a surge in investment banking was clouded by declines in its trading and wealth management arms. Excluding a net credit reserve release of $1.8 billion, earnings would have declined more than the market estimated. The stock was the worst performer on S&P 500 and the Dow.
BlackRock's (BLK) Q4 earnings beat consensus, but revenue missed the market's expectations. Shares fell 2.2%.
Citigroup's (C) Q4 earnings surged past analysts' expectations, boosted by a revenue increase driven mainly by strong growth in investment banking. Still, shares were down 1.3%.
Meanwhile, shares of major casino operators surged after Macau in China released planned changes to the territory's regulations, including a short-term license and increased local ownership in the casino firms. Las Vegas Sands (LVS) soared 14.2%, and Wynn Resorts (WYNN) advanced 8.6% on Friday, the top performers on S&P 500.
US retail sales slumped in December by the most in 10 months as the widening spread of the omicron variant of COVID-19 dented consumers in the final part of the holiday shopping season, the US Census Bureau said on Friday. Sales dropped 1.9% to $626.8 billion, while the Econoday consensus was for a flat reading.
In other economic news, the Michigan sentiment index fell to 68.8 in early January from 70.6 in December. Assessments of current economic conditions and the outlook both declined in the month while inflation expectations increased.
"While the Delta and Omicron variants certainly contributed to this downward shift, the decline was also due to an escalating inflation rate," the survey's chief economist, Richard Curtin said. "Three-quarters of consumers in early January ranked inflation, compared with unemployment, as the more serious problem facing the nation."
The economy is improving and headed in the right direction, but not without risks and constraints, Federal Reserve Bank of Philadelphia President Patrick Harker said during the Chamber of Commerce for Greater Philadelphia's virtual economic outlook event. Harker cited a survey of the chamber's members showing that business conditions were better in 2021 than in 2020, with most respondents expressing optimism that conditions will continue to improve in 2022.
Gold was down 0.3% to $1,816.50, silver was down 0.8% to $22.98 an ounce, and copper was down 2.4% to $4.44 per pound. Among energy ETFs, the United States Oil Fund was up 2.9% to $59.96, and the United States Natural Gas Fund was down 0.2% to $14.17.
US markets will be closed on Monday in observance of the Martin Luther King Jr. Day holiday.