US OPEN: Mixed opening on Wall Street, Banks in retreat!

3:02 PM January 14, 2022
  • Last session on Wall Street this week starts with moderate declines 
  • Financial sector earnings season for Q4 2021
  • US sales data disappoints!
  • Senate blocks vaccine obligation for large private companies

The last trading session on Wall Street this week brings moderate declines, caused by the retreat of shares of financial companies after the start of the season of publication of results for the fourth quarter of 2021. Investors also learned retail sales data, which slightly disappointed the market and showed that Americans are slowing the pace of shopping. 

The US30 index is down around 0.6% at the start of today's trading and is testing the support set by the confluence of the 38.2% Fibo retracement and the EMA 50 (blue line). If the supply side manages to continue declines, the next potential level for a rebound is the area of 50% retracement and EMA 100 (purple line). Local resistance remains near 36,100 points. Source: xStation 5

News: 

Today begins the period of publishing financial results by major banks and other financial institutions. JP Morgan (JPM.US) Citigroup (C.US), Wells Fargo (WFC.US) and BlackRock (BLK.US) released their results before the start of trading in the US today. The banks delivered better revenue results than analysts had expected, but EPS ratios for individual institutions were rather mixed. Before the US market opened, JPM.US shares lost nearly 4.5%, WFC.US gained 1%, C.US dived 4% and BLK.US lost 2.3%.  As a reminder:
JP Morgan (JPM.US)


Revenue - $30.35 billion (expected - $29.9 billion)
Net profit - $10.14 billion (previously - $12.14 billion) 
EPS - $3.33 (expected - $3.79)


Wells Fargo (WFC.US)


Revenue - $20.86 billion (expected $18.85 billion)
EPS - $1.38 (expected - $1.02)


Citigroup (C.US)


Revenue - $17.02 billion (expected - $16.80 billion)
EPS - $1.99 (expected - $1.62)


BlackRock (BLK.US)


Revenue - $5.11 billion (expected - $5.16 billion)
EPS - $10.42 (expected - $10.15)
Assets under management -$10.1 trillion (expected - $9.85 trillion)

JP Morgan (JPM.US) shares opened today with a huge gap down and are losing the most since 2020, diving more than 6%. Currently, the company's shares are testing the support set by the EMA 200 (gold line). Source: xStation 5

Retail sales data from the US showed a strong decline on the month. Retail sales fell by 1.9% in December, against expectations of a 0.1% monthly decline. This is the first decline since August and the largest since March. Core sales also disappointed and showed a 2.3% month-on-month decline (a 0.2% increase was expected). 

Medical companies are diving today after the Supreme Court blocked President Biden's adminitration of a vaccine or testing mandate for large corporations. Novavax (NVAX.US) shares are losing nearly 15% before the session opens on Wall Street. Moderna (MRNA.US) is down 5% and Pfizer (PFE.US) is losing 2%.

President Biden nominated Ms. Sarah Bloom Raskin as the Federal Reserve's next vice chair for supervision. 

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