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Midday Market Update: Bank Earnings Can't Lift Sentiment

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Stock gains were mixed by midday Monday in a market largely unchanged from what was seen in the morning. Risk sentiment was poor even as JPMorgan  (JPM) - Get JPMorgan Chase & Co. (JPM) Report earnings were stellar.

The S&P 500 fell about 0.35% even with large cap tech up, as the Nasdaq rose as much as 0.3%. The 10-Year Treasury yield fell considerably to 0.74% from 0.78%.

Investors have been favoring large cap growth tech this week as economic uncertainty has emerged. Apple  (AAPL) - Get Apple Inc. (AAPL) Report, though, fell more than 1% to $122 a share after a 6% up-move Wednesday in anticipation of an iPhone 12 unveiling that could precede strong consumer demand.

But cyclical stocks like airlines, restaurants, oil and manufacturers were all down, some more than 1%.

Positively, JPMorgan posted revenue of $29 billion, narrowly beating estimates. Earnings per share was $2.92, rising 9% year-over-year and beating estimates of $2.23. Loan loss provisions fell more than 90% quarter-over-quarter, as consumer and business credit brightened during the quarter. JPM’s top line beat was largely on the back of growth in trading and investment banking. The stock fell more than 1% to $100 a share, although banks more sensitive to the yield curve, like Wells Fargo  (WFC) - Get Wells Fargo & Company Report, fell more than 2%.

The driver of fear on the economic outlook: Johnson and Johnson  (JNJ) - Get Johnson & Johnson (JNJ) Report fell 1.9% after saying it is halting trials of its COVID vaccine because a trial patient had an unexplained illness. Fewer vaccine doses distributed, combined with delayed fiscal stimulus puts the V-shaped economic recovery at risk of slowing considerably. 

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