US open: Stocks lower following bank earnings, PPI reading

(Sharecast News) - Major indices were in the red early on Wednesday as traders digested another round of bank earnings and some more key inflation numbers.

As of 1515 GMT, the Dow Jones Industrial Average was down 0.10% at 49,141.53, while the S&P 500 shed 0.49% to 6,929.51, and the Nasdaq Composite came out of the gate 0.82% softer at 23,514.75.

The Dow opened 50.46 points lower on Wednesday, extending heavy losses recorded in the previous session as quarterly earnings from JPMorgan weighed on both the stock and financials after it posted fourth-quarter investment banking fees that disappointed investors.

In terms of Wednesday's earnings, Bank of America posted improved fourthquarter profits as increased market volatility drove stronger client activity across its trading desks. BofA said sales and trading revenue rose 10% to $4.5bn in the period, in line with guidance issued by chief executive Brian Moynihan in December.

Meanwhile, Wells Fargo reported an increase in Q4 profits, supported by loan growth and higher interest income across its consumer and commercial divisions. Wells Fargo posted net income of $5.36bn, or $1.62 per share, up from $5.08bn, or $1.43 per share, a year earlier.

Citigroup topped estimates with its Q4 performance as loan loss provisions came in lighter than expected and it continued to benefit from US banking deregulation. Adjusted earnings and revenues came in at $1.81 per share and $21bn, ahead of expectations of $1.67 per share and $20.72bn.

On the macro front, the US producer price index rose 0.2% month-on-month in November, according to the Bureau of Labor Statistics, hitting a reading of 150.71. On an annualised basis, producer prices increased by 3%. November's goods PPI advanced 0.9% month-on-month, the services PPI was unchanced on the month. Excluding volatile foods, energy, and trade services, so-called core PPI rose by 0.2% from October and 3.5% annually.

Elsewhere, mortgage applications surged 28.5% in the week ended 9 January, according to the Mortgage Bankers Association of America, up from the prior week's far more modest 0.3% uptick. Applications to refinance a mortgage shot up by 40% week-on-week, while applications to purchase a home increased by 16.9%. Last week's increase was the sharpest since September and was in line with a decline in benchmark mortgage rates, with 30-year contracts dropping to a 15-month low of 6.18%.

On another note, US retail sales rose 0.6% in November, rebounding from a revised 0.1% decline in October and coming in ahead of the 0.4% increase expected. According to the Census Bureau, the strongest gains came from sporting goods, hobby, musical instrument and book stores, where sales climbed 1.9%, while miscellaneous retailers saw a 1.7% rise.

Still on data, US business inventories rose 0.3% month-on-month in October, according to the Census Bureau, ahead of expectations and marking the fastest growth rate since January 2025. October's increase followed an upwardly revised 0.3% gain in September. Retailer inventories climbed 0.6%, up from 0.5% in September, while manufacturers' inventories were flat month-on-month. On an annualised basis, total business inventories grew 1.4% in October.

Finally, existing home sales surged 5.1% in December to an annualised rate of 4.35m, according to the National Association of Realtors, firmly above market expectations. The median price of existing home sales eased to $405,400 in December, a 0.4% increase year-on-year.

The US Supreme Court was also in focus early on Wednesday, with judges set to make a ruling on the White House's use of the International Emergency Economic Powers Act for tariffs. The Supreme Court was expected to make a ruling on Wednesday, delayed from Friday.

"It's thought the Supreme Court is leaning towards rejecting Trump's use of the act to impose tariffs, the central plank of his economic policy, which is likely ot lead to near-term uncertainty in financial markets over trade as well as economic and fiscal policy," said Saxo's Neil Wilson. "However, the delay from Friday could indicate this is a much tighter decision than previously thought and it could be that the delay indicates justices are leaning closer to backing the administration. Market odds indicate a roughly one in four chance that SCOTUS backs the president."

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Dow Chemical Co. (DOW) $27.83 4.82%

Chevron Corp. (CVX) $166.98 1.90%

Intel Corp. (INTC) $48.17 1.85%

Unitedhealth Group Inc. (UNH) $338.73 1.44%

Procter & Gamble Co. (PG) $146.22 1.37%

Johnson & Johnson (JNJ) $216.27 1.23%

Verizon Communications Inc. (VZ) $39.49 1.23%

International Business Machines Corporation (CDI) (IBM) $306.16 0.99%

Nike Inc. (NKE) $66.77 0.71%

Travelers Company Inc. (TRV) $273.07 0.69%

Dow Jones - Fallers

Goldman Sachs Group Inc. (GS) $923.62 -1.55%

Microsoft Corp. (MSFT) $463.62 -1.50%

Cisco Systems Inc. (CSCO) $74.36 -1.48%

Boeing Co. (BA) $240.98 -1.46%

American Express Co. (AXP) $353.82 -1.17%

Apple Inc. (AAPL) $258.95 -0.81%

JP Morgan Chase & Co. (JPM) $308.95 -0.63%

Caterpillar Inc. (CAT) $632.90 -0.57%

Coca-Cola Co. (KO) $70.88 -0.51%

Home Depot Inc. (HD) $378.05 -0.45%

S&P 500 - Risers

Mosaic Company (MOS) $27.68 5.61%

LyondellBasell Industries (LYB) $51.05 4.89%

CF Industries Holdings Inc. (CF) $86.71 4.63%

Apache Corp. (APA) $26.80 4.20%

Devon Energy Corp. (DVN) $38.23 3.77%

Omnicom Group Inc. (OMC) $80.38 3.70%

Crown Castle International (CCI) $89.95 3.62%

American Tower Corp (Reit) (AMT) $180.23 3.61%

Dxc Technology Company (DXC) $15.44 3.55%

Phillips 66 Common Stock (PSX) $142.39 3.41%

S&P 500 - Fallers

Biogen Inc (BIIB) $167.20 -6.23%

Intuit Inc. (INTU) $574.91 -5.02%

Wells Fargo & Co. (WFC) $88.91 -4.97%

TripAdvisor Inc. (TRIP) $14.11 -4.89%

Royal Caribbean Cr (RCL) $278.24 -4.62%

Intuitive Surgical Inc. (ISRG) $537.27 -4.37%

Bank of America Corp. (BAC) $52.22 -4.25%

Broadcom Inc. (AVGO) $340.40 -4.01%

Norwegian Cruise Line Holdings Ltd (NCLH) $23.07 -3.15%

Carnival Corp. (CCL) $30.04 -3.07%

Nasdaq 100 - Risers

Baidu Inc. (BIDU) $153.00 2.44%

DENTSPLY Sirona Inc. (XRAY) $12.43 2.43%

Kraft Heinz Co. (KHC) $24.04 2.25%

Intel Corp. (INTC) $48.17 1.85%

Charter Communications Inc. (CHTR) $201.02 1.58%

Mondelez International Inc. (MDLZ) $56.81 1.56%

Vodafone Group Plc ADS (VOD) $13.36 1.40%

Sirius XM Holdings Inc (SIRI) $21.07 1.23%

Dollar Tree Inc (DLTR) $139.03 1.21%

Biomarin Pharmaceutical Inc. (BMRN) $55.81 1.10%

Nasdaq 100 - Fallers

Trip.com Group Limited (TCOM) $64.47 -14.81%

Biogen Inc (BIIB) $167.20 -6.23%

Intuit Inc. (INTU) $574.91 -5.02%

Intuitive Surgical Inc. (ISRG) $537.27 -4.37%

Broadcom Inc. (AVGO) $340.40 -4.01%

Cadence Design Systems Inc. (CDNS) $313.63 -2.92%

Expedia Group Inc. (EXPE) $291.81 -2.72%

Lam Research Corp. (LRCX) $208.77 -2.62%

Nvidia Corp. (NVDA) $181.32 -2.41%

NetEase Inc. Ads (NTES) $139.57 -2.34%