US stocks dip as banking shares hit

NEW YORK (AFP) - Wall Street stocks dipped on Wednesday (May 31), with banking shares tumbling, as a Federal Reserve report pointed to ebbing optimism in companies around the United States.

US stocks fell as the Fed's "beige book" said while sentiment remained broadly upbeat, uncertainty about trade and other government policies were weighing on optimism in some regions.

Stocks also dipped on Tuesday, the first session of the holiday-shortened week, with major indices pulling back from the records struck Friday.

The three major indices each fell by 0.1 per cent, with the Dow Jones Industrial Average closing at 21,008.65.

The broad-based S&P 500 ended at 2,411.80, while the tech-rich Nasdaq Composite Index fell to 6,198.52.

Bank of America, JPMorgan Chase and Goldman Sachs all fell more than two percent after large banks said trading revenues were lower so far in the second quarter compared with the year-ago level.

ExxonMobil fell 0.7 per cent as investors sided with environmentalists and voted to direct the oil giant to account for its assets under more strict climate change policies, a shareholder proposal opposed by the company.

Handbag and apparel company Michael Kors slumped 8.5 per cent after announcing a US$26.8 million (S$37 million) loss in the first quarter following an 11.3 per cent decline in revenues to US$1 billion.

Kors announced it would shut 100 to 125 stores, joining a growing list of retailers who are shutting brick-and-mortar outlets as e-commerce grabs more market share.