NEW YORK: Wall Street has tread water on Friday, with the Dow Jones Industrial Average finishing lower for the second day in a row despite healthy profits from major banks.
US stocks continued to feel the disappointment with President-elect Donald Trump’s news conference on Wednesday, where he failed to offer specifics on any economic stimulus, tax cuts or deregulation. Hopes for these business-friendly policy changes had been behind the market rally since the election.
The blue-chip Dow finished down less than 0.1 percent at 19,885.73, while the broader S&P 500 gained 0.2 percent to 2,274.64 and the Nasdaq rose 0.5 percent to finish at 5,574.12.
“The market has run out of upside catalysts for the near term,” said Tom Cahill of Ventura Wealth Management. “Investors were a little disappointed with Trump’s press conference as he didn’t really address economic policies and there were some hopes he would.”
Commerce Department figures released early Friday showed that retail spending rebounded in December, rising 0.6 percent, but was driven by strong auto sales. Department store sales fell 0.6 percent as shoppers increasingly turned to the internet to buy goods.
Chief among the Dow’s losers, retail giant Wall-Mart Stores Inc dropped 1.2 percent, Target, gave up 1.5 percent and Sears lost 0.8 percent.
Financials were another story, however, as bank earnings reports for 2016 released before the opening bell provided good news.
Wells Fargo saw shares rise 1.5 percent, despite reporting a 4.2 percent decline in net profit for 2016. The bank is fresh off its sham accounts scandal, in which it admitted to opening millions of credit and debit accounts in customers’ names without their knowledge.
Wall Street behemoth JP Morgan Chase, which saw 2016 profits up 1.2 percent, rose 0.5 percent, while Bank of America gained 0.4 percent after posting a 13 percent year-on-year increase in net profit last year.