Monday, March 1, 2021

Global Market Square

By on January 15, 2021

The U.S. stock market closed with losses. Despite better than expected bank earnings, dismal retail sales data drove markets down.

Investor sentiment turned negative when the U.S. Commerce Department reported that retail sales had fallen 0.7% in December; the decrease is quite significant as most projections pointed toward flat growth. 

The corporate earnings season began Friday, with three of the top U.S. Banks reporting their fourth quarter 2020 earnings.

  • JP Morgan Chase (J.P.M.) reported $12 billion earnings, a 42% increase, with revenues of $30.2 billion during the fourth quarter; full year 2020 profit was $29 billion, and the stock closed $138.39, down $2.78, or 1.97%.
  • Citigroup (C) reported $4.6 billion in earnings, on revenues of $16.5 billion, full-year profits were $11.4 billion; its stock closed at $64.60, down $4.41, or 6.34%. 
  • Wells Fargo (WFC) reported $3 billion in earnings, on revenues of $17.9 billion; its stock closed at $32.01, down $2.40, or 7.88%. 

Three critical economic benchmarks reported Friday: 

  • U.S. Retail and Food Services Sales month-over-month (MoM) rose to -0.68% compared to -1.37% last month and 0.06% last year. 
  • U.S. Auto and Other Motor Vehicle Sales increased to $106.93 billion, up from $104.84 billion last month, a 1.99% increase from the previous month and 10.63% from one year ago.
  • U.S. Industrial Production MoM rose to 1.57%, compared to 0.47% last month.

Wall Street summary for January 15, 2021,

  • The Dow Jones Industrial Average closed 30,814.26, down 177.26 points, or 0.57%.
  • The Standard & Poor’s 500 closed at 3,768.95, down 27.29 points, or 0.72%.
  • The Nasdaq Composite Index closed at 12,998.50, down 114.14 points, or 0.87%.
  • The Birling Capital Puerto Rico Stock Index closed at 2,211.59, up 53.27 points, or 2.47%.
  • The U.S. Treasury 10-year note closed at 1.11%
  • The U.S. Treasury 2-year note closed at 0.13%

Global Market Square presented by Birling Capital

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