- US stocks dropped on Friday as investors digested the first batch of bank earnings.
- JPMorgan, Citigroup, and Wells Fargo all reported first quarter earnings that beat estimates.
- "There seems to be a large number of persistent inflationary pressures, which may likely continue," JPMorgan CEO Jamie Dimon said.
US stocks dropped on Friday as investors digested the first batch of first-quarter earnings with the major banks reporting results.
JPMorgan, Wells Fargo, and Citigroup all reported first-quarter earnings that beat analyst estimates, though the beats weren't too impressive as shares of JPMorgan and Wells Fargo declined while Citigroup stock jumped about half of a percent.
JPMorgan CEO Jamie Dimon warned that while the stock market is in a happy place and most economic indicators look favorable, there are still sizable risks that could arise at any time.
"Looking ahead, we remain alert to a number of significant uncertain forces. First, the global landscape is unsettling, terrible wars and violence continue to cause suffering, and geopolitical tensions are growing. Second, there seems to be a large number of persistent inflationary pressures, which may likely continue," Dimon said.
On the inflation front, US import prices rose for the third month in a row in March, slightly above consensus estimates at 0.4% month-over-month. Nearly all of the increase in import prices has been driven by the recent surge in oil prices.
Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Friday:
- S&P 500: 5,168.11, down 0.6%
- Dow Jones Industrial Average: 38,269.98, down 0.49% (-189.10 points)
- Nasdaq Composite: 16,304.73, down 0.83%
Here's what else is going on today:
- Oil prices surged more than 2% after reports said that Iran could launch a direct attack against Israel within the next two days.
- Apple stock could surge nearly 30% as Wall Street underestimates its earnings power, according to a new note from Bank of America.
- Sticky inflation means the Federal Reserve won't make its first interest rate cut until December, according to Bank of America.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil jumped by 2.60% to $87.23 a barrel. Brent crude, the international benchmark, climbed 2.17% to $91.69 a barrel.
- Gold jumped 1.79% to $2,415.20 per ounce.
- The 10-year Treasury yield dropped 8 basis points to 4.51%.
- Bitcoin edged higher by 0.23% to $70,184.
