US stocks dip after bank earnings

Traders work on the floor of the New York Stock Exchange in a file photo.
Traders work on the floor of the New York Stock Exchange in a file photo.PHOTO: AFP

NEW YORK (AFP) - Wall Street stocks ended modestly lower on Monday (April 15) following mixed results from large banks ahead of other earnings reports and economic data.

The Dow Jones Industrial Average dipped 0.1 per cent to 26,384.77.

The broad-based S&P 500 also slipped 0.1 per cent to 2,905.58, while the tech-rich Nasdaq Composite Index likewise lost 0.1 per cent at 7,976.01.

Goldman Sachs fell 2.8 per cent after reporting a 20.3 per cent decline in earnings to US$2.1 billion (S$2.8 billion) due in part to weak trading revenues.

Executives talked up new online banking products that broaden Goldman's reach beyond Wall Street but those are not expected to boost earnings for a few years.

Citigroup slipped 0.1 per cent after reporting a 1.9 per cent increase in first-quarter profits to US$4.7 billion.

With the S&P 500 up nearly 16 per cent this year, analysts say it will be harder for the market to rise further without an obvious catalyst.

Analysts expect earnings to decline overall compared with the year-ago period, although some believe companies will have an easy time topping the reduced expectations.

Economic releases this week include retail sales, the trade balance and manufacturing surveys as well as new home construction.

Among other companies, American Airlines dropped 2.7 per cent after announcing it will scrap some 115 flights per day in the coming months because its fleet of Boeing 737 Max planes is being grounded until Aug 19.

United Continental shed 1.1 per cent after it announced it would pull the Boeing aircraft from its schedule through early July.

Boeing dropped 1.1 per cent following the announcements.