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US Indexes Mixed Tuesday After Bank Earnings

The Dow Jones Industrial Average closed at 28,939.67 on Tuesday with a gain of 32.62 points or 0.11%. The S&P 500 closed at 3,283.15 for a loss of 4.98 points or -0.15%. The Nasdaq Composite closed at 9,251.33 for a loss of 22.60 points or -0.24%. The VIX Volatility Index was higher at 12.58 for a gain of 0.26 points or 2.11%.

Tuesday's market movers

Big bank earnings led top headlines Tuesday. JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C) reported the following results:

  • JPMorgan: Revenue of $28.3 billion increased 8.4% year over year and beat estimates by $610 million. Fourth-quarter GAAP earnings of $2.57 per share beat estimates by 22 cents.
  • Wells Fargo: Revenue of $19.86 billion decreased 5.3% year over year and missed estimates by $250 million. Fourth-quarter GAAP earnings of 60 cents per share missed estimates by 52 cents and non-GAAP earnings of 93 cents missed estimates by 17 cents.
  • Citigroup: Revenue of $18.38 billion increased 7.4% year over year and beat estimates by $430 million. Fourth-quarter GAAP earnings of $2.15 per share beat estimates by 32 cents and non-GAAP earnings of $1.90 beat estimates by 7 cents.

Strong banking results were driven by comments suggesting a strong economy and strong consumer activity. The Dow Jones ended higher, while the S&P 500 and Nasdaq fell. Despite strong bank results, data releases did show a decline of approximately 2% in earnings expected for the quarter across S&P 500 companies. Investors were also somewhat concerned about Wednesday's "phase one" signing with China, which is focused on Chinese import commitments but light on the key economic reforms President Trump has been pushing for. Moreover, impeachments developments are suggesting that the Senate will start an impeachment trial next Tuesday.

Economic reports affecting market trading included the following:

  • The NFIB Business Optimism Index decreased to 102.7 in December from 104.7.
  • The Consumer Price Index (CPI) increased 0.2% in December following an increase of 0.3%. Year over year, the Consumer Price Index has an increase of 2.3%, up from 2.1%.
  • The Core Consumer Price Index excluding food and energy increased 0.1% in December following an increase of 0.2%. The Core CPI was up 2.3% year over year.

In the S&P 500, health care led gains and real estate led losses. In the Dow Jones Industrial Average, the following stocks led gains and losses:

  • Pfizer (NYSE:PFE) +1.48%
  • JPMorgan +1.06%
  • Apple (NASDAQ:AAPL) -1.28%
  • Microsoft (NASDAQ:MSFT) -0.89%

Small-cap stocks

In small caps, the Russell 2000 closed at 1,674.09 for a gain of 4.49 points or 0.27%. The S&P 600 closed at 1,023.68 for a gain of 3.35 points or 0.33%. The Dow Jones U.S. Small-Cap Growth Index closed at 10,800.36 for a gain of 54.00 points or 0.50%. The Dow Jones U.S. Small-Cap Value Index closed at 9,897.68 for a gain of 25.01 points or 0.25%.

Other notable indexes

Other notable index closes included the S&P 400 Mid-Cap Index at 2,073.02 for a gain of 4.89 points or 0.24%; the S&P 100 at 1,469.43 for a loss of 3.68 points or -0.25%; the Nasdaq 100 at 9,033.42 for a loss of 37.23 points or -0.41%; the Russell 3000 at 1,923.56 for a loss of 1.66 points or -0.086%; the Russell 1000 at 1,815.26 for a loss of 2.13 points or -0.12%; the Wilshire 5000 at 33,564.23 for a loss of 30.62 points or -0.091%; and the Dow Jones U.S. Select Dividend Index at 756.39 for a gain of 1.29 points or 0.17%.

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This article first appeared on GuruFocus.