Wall Street stumbled on Friday, weighed by banking stocks after disappointing results from JPMorgan Chase & Co set a gloomy tone for the coming week's earnings.
Stocks extended losses after a survey showed U.S. consumer sentiment was little changed in early January, as worries over income and high unemployment offset news of an improving economy.
People are looking for more growth in the economy, and the sentiment isn't there, said Thomas Nyheim, vice president and portfolio manager at Christiana Bank & Trust Co in Greenville, Delaware.
The Dow Jones industrial average <.DJI> was down 87.82 points, or 0.82 percent, at 10,622.73. The Standard & Poor's 500 Index <.SPX> fell 9.89 points, or 0.86 percent, at 1,138.57. The Nasdaq Composite Index <.IXIC> shed 21.59 points, or 0.93 percent, at 2,295.15.
JPMorgan shares, part of the Dow industrials index, fell 1.9 percent to $43.85 and Bank of America
JPMorgan is the bellwether, (and) you would hope they'd be the first bank to be able to begin the process of paring down loan loss reserves, said Jamie Cox, managing partner at Harris Financial Group in Colonial Heights, Virginia.
The S&P Financial Index <.GSPF> lost 1.8 percent, the worst performing sector in the index, while the KBW Bank Index <.BKX> shed 2.1 percent.
A U.S. Labor Department report earlier showed consumer prices rose at a slower-than-expected pace in December, pointing to subdued inflation.
U.S. House of Representatives Democratic Leader Steny Hoyer said congressional Democrats are very close to reaching final agreement on healthcare reform legislation and could have a deal in days.
The Morgan Stanley Healthcare Payor index <.HMO> was down 0.6 percent while the S&P Healthcare index <.GSPA> lost 0.7 percent.
The U.S. dollar <.DXY> extended gains on Friday, up 0.7 percent against a basket of rival currencies, while oil fell 1.2 percent to $78.48 a barrel.
(Additional Reporting by Ryan Vlastelica; Editing by Padraic Cassidy)