Midday Update: Stocks Struggle as Big Banks, Energy Weigh
Stocks were slightly lower Thursday as the three benchmark indexes retreated from records set a day earlier. The Dow Jones Industrial Average was lower just barely. The S&P 500 slipped slightly too. The Nasdaq was close to flat right near midday.
Stocks were slipping some after big banks reported continued declines in trading revenue that put pressure on the sector. JPMorgan (JPM) - Get Report stock was trading lower Thursday even after the bank reported better-than-expected earnings and revenue. But the kicker was fixed income trading, down 21% to $4.53 billion in the third quarter. The bank had previously estimated trading revenue would suffer as volatility remained low.
It was a similar story for Citigroup (C) - Get Report . The bank posted wins in both earnings and revenue, but trading and corporate profits remained weak. Bond trading sank 16% in the third quarter. Corporate revenue tumbled 55%. Fellow big banks Wells Fargo (WFC) - Get Report and Bank of America (BAC) - Get Report report earnings Friday.
Energy stocks were among the worst performers at midday Thursday. Crude prices were lower ahead of the EIA's weekly reading on crude due out later today. Stockpiles have receded in the past few weeks as operational refineries continue to wade through a buildup after Hurricane Harvey.
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