by Chuck Mikolajczak

(Reuters) – The New York Stock Exchange ended Friday in mixed order and with slight variations, shared between mixed results from major American banks and an inflation indicator reinforcing the hypothesis of an upcoming cut in interest rates of the Federal Reserve.

The Dow Jones index lost 0.31%, or 118.04 points, to 37,592.98 points.

The broader S&P-500 gained 3.59 points, or 0.08%, to 4,783.83 points.

The Nasdaq Composite finished almost stable with a gain of 2.58 points (0.02%) to 14,972.76 points.

Over the week, the S&P-500 achieved its best weekly performance since mid-December with a gain of 1.84% while the Dow for its part increased by 0.34% and the Nasdaq by 3.09%, its sharpest increase since the beginning of November.

The big Wall Street banks kicked off the corporate results season on Friday and their publications were marked by a drop in profits in the fourth quarter, even a loss for Citigroup, due in particular to exceptional charges related to to the bailout of the federal deposit guarantee fund which had seriously dried up after several bankruptcies of intermediate-sized establishments last year.

If their leaders have been optimistic about the solidity of the American economy, these large banks also risk having to face an environment less favorable to their income this year with the expected drop in interest rates from the Fed.

The hypothesis of such monetary easing was reinforced after the announcement this Friday of an unexpected decline in producer prices over one month in December in the United States.

JPMorgan ended down 0.73% despite a record annual profit, Bank of America fell 1.06% and Wells Fargo fell 3.34%. Citigroup, which announced the elimination of 20,000 jobs, or around 8% of its workforce, over the next two years, stood out with a gain of 1.04%.

The Dow Jones index was especially penalized by the 3.37% decline in UnitedHealth shares, the health insurer having announced higher costs than expected in terms of healthcare reimbursements despite a turnover and profit higher than the expectations in the fourth quarter.

Delta Air Lines fell 8.97% after a profit warning.

Excluding results news, Tesla lost 3.67% after lowering the price of some of its models in China. The electric car manufacturer will also suspend most of its production at its factory near Berlin from January 29 to February 11 due to a shortage of parts due to disruptions in maritime traffic linked to attacks on ships at sea. Red.

(Written by Chuck Mikolajczak, Bertrand Boucey)

Copyright © 2024 Thomson Reuters