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Jan. 14, 2022, 5:03 p.m. EST

Dow ends lower with losses led by JPMorgan as the blue-chip index, S&P 500 book second week of losses

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By Christine Idzelis and Mark DeCambre

U.S. stocks closed mixed Friday, but all three major indexes suffered weekly losses as the prospect of rising interest rates and weaker economic data cast some doubt on the strength of the recovery from the COVID-19 pandemic.

New York Fed President John Williams, a key ally of Fed Chairman Jerome Powell, said Friday that he expects economic growth to slow in 2022 to a 3.5% annual rate, from an estimated 5.5% rate last year, on the spread of omicron.

What did stock indexes do?

  • The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.34% dropped 201.81 points, or 0.6%, to close at 35,911.81, weighed by declines in shares of Goldman Sachs Group Inc. /zigman2/quotes/209237603/composite GS +3.14% , JPMorgan Chase & Co. /zigman2/quotes/205971034/composite JPM +3.31% and American Express Co. /zigman2/quotes/203805826/composite AXP +3.46%

  • The S&P 500 /zigman2/quotes/210599714/realtime SPX +2.02% edged up 3.82 points, or 0.1%, to end at 4,662.85.

  • The Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +2.76% advanced 86.94 points, or 0.6%, to finish at 14,893.75, after flipping between gains and losses during the trading session.

On Thursday , the Dow fell 177 points, or 0.49%, to 36114, the S&P 500 declined 67 points, or 1.42%, to 4659, and the Nasdaq Composite dropped 382 points, or 2.51%, to 14807.

For the week, the Nasdaq Composite and S&P 500 each slipped 0.3% while, the Dow fell 0.9%. The Nasdaq has fallen for three straight weeks, while the S&P 500 and Dow each booked two consecutive weeks of losses, according to Dow Jones Market Data.

What the drove market?

Stocks ended mixed Friday after sentiment on Wall Street appeared to sour in a tumultuous week of trade on heightened anticipation for higher interest rates and concerns over the economic outlook.

Federal Reserve officials have been signaling plans to begin tightening monetary policy through rate hikes this year to help combat hot inflation.

“The discussion on inflation is getting real,” said Tim Pagliara, chief investment officer of CapWealth, in a phone interview Friday. “It’s really a time to say ‘time out,’ and the Fed, Congress and the executive branch of government have to work to solve this problem.”

Concerns about the near-term economic outlook and a bumpy rotation from highflying stocks to cyclicals appeared to contribute to market volatility.

“I expect the current omicron wave to slow growth in the next few months as people once again pull back from contact-intensive activities,” New York Fed President John Williams said Friday in remarks to the Council on Foreign Relations.

The U.S. Department of Commerce released data Friday showing retail sales dropped 1.9% in December, exceeding the 0.1% decline forecast by economists polled by The Wall Street Journal.

“Consumer price inflation could be weighing on retail spending,” along with the rapid spread of the omicron variant, said Giorgio Caputo, head of the multiasset value team at J O Hambro Capital Management , in a phone interview Friday. “It’s always very hard to figure out what keeps people away from purchases.”

Some of the sharp decline in retail sales in December may be the result of households getting an earlier jump on their holiday shopping in October due to concern over “goods shortages and shipping delays” in the pandemic, Barclays said in an economics research report Friday.

“Adverse effects on spending from the omicron variant” may also have contributed to the drop, including in categories such as restaurants and in-store purchases, said Barclays. “Inflation-adjusted (real) disposable incomes of households have been trending lower in recent months,” also possibly hurting spending.

/zigman2/quotes/210598065/realtime
US : Dow Jones Global
32,654.59
+431.17 +1.34%
Volume: 389.31M
May 17, 2022 4:54p
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/zigman2/quotes/209237603/composite
US : U.S.: NYSE
$ 312.97
+9.53 +3.14%
Volume: 2.10M
May 17, 2022 4:00p
P/E Ratio
6.07
Dividend Yield
2.56%
Market Cap
$104.22 billion
Rev. per Employee
$1.40M
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/zigman2/quotes/205971034/composite
US : U.S.: NYSE
$ 122.18
+3.92 +3.31%
Volume: 11.16M
May 17, 2022 4:00p
P/E Ratio
9.07
Dividend Yield
3.27%
Market Cap
$347.34 billion
Rev. per Employee
$463,153
loading...
/zigman2/quotes/203805826/composite
US : U.S.: NYSE
$ 161.85
+5.42 +3.46%
Volume: 2.93M
May 17, 2022 4:03p
P/E Ratio
16.21
Dividend Yield
1.29%
Market Cap
$117.80 billion
Rev. per Employee
$723,328
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,088.85
+80.84 +2.02%
Volume: 2.46B
May 17, 2022 4:54p
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/zigman2/quotes/210598365/realtime
US : Nasdaq
11,984.52
+321.73 +2.76%
Volume: 4.44M
May 17, 2022 5:16p
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