Friday, January 14, 2022

DJIA: 35,911.81, down 201.81
S&P 500: 4,662.85, up 3.82
Nasdaq: 14,893.75, up 86.94

Stocks mixed; yields jump

Stocks finished mixed on Friday as investors weighed disappointing corporate earnings results and economic data. The Dow fell 201 points, dragging the blue chip index 0.9% lower for the week. The S&P 500 rose 0.1%, trimming its weekly loss to 0.3%. The Nasdaq Composite added 0.6%, paring its five-day drop to 0.3%, still its third straight weekly decline. The tech-heavy benchmark closed more than 7.2% below its most recent November 19 record, but remained above its 200-day moving average, a closely watched technical level.

Seven of 11 S&P 500 sectors closed in negative territory, with Financials lagging the most as earnings from major banks were poorly received. JPMorgan Chase & Co. slid 6.3%, while Citigroup Inc. shed 1.3% after both firms reported a slowdown in fourth-quarter profits amid weaker trading revenue. Elsewhere, Netflix Inc. gained 1.3% after announcing price increases for its streaming service.

Disappointing data also dampened sentiment. U.S. retail sales slumped 1.9% in December, the largest decline in 10 months. Separately, a preliminary reading from the University of Michigan showed consumer sentiment deteriorating in January. Additionally, industrial production contracted last month amid material and labor shortages.

Treasuries retreated as a chorus for Federal Reserve (Fed) leaders this week voiced support for a March rate hike. The yield on the more Fed-sensitive two-year note spiked seven basis points (0.07%) to 0.96%, a fresh pandemic peak. The yield on the 10-year note jumped eight basis points (0.08%) to 1.78%, though little changed on the week. In commodities, WTI crude ended at $84.19/barrel, capping a four-week winning streak that marked its best run since October.

Read more about it here.