U.S. stocks slid on Friday after JPMorgan Chase & Co reported deep fourth-quarter loan losses that raised concerns about earnings for the banking industry.
JPMorgan , the first major bank to report quarterly results, shed 2 percent to $43.78 while other banks, scheduled to announce results next week, also fell. Bank of America Corp lost 3.5 percent to $16.23 and Wells Fargo & Co was off 3 percent to $28.13.
Because JPMorgan is a bellwether and a very well-managed company, it definitely makes me pessimistic about the upcoming results from the sector, said Alan Lancz, president at Alan B. Lancz & Associates in Toledo, Ohio.
The Dow Jones industrial average <.DJI> was down 136.80 points, or 1.28 percent, at 10,573.68. The Standard & Poor's 500 Index <.SPX> fell 15.74 points, or 1.39 percent, at 1,133.54. The Nasdaq Composite Index <.IXIC> shed 35.35 points, or 1.52 percent, at 2,281.62.
U.S. financial markets will be closed on Monday for the Martin Luther King Jr. Day holiday.
The S&P Financial index <.GSPF> was the biggest percentage loser among S&P sectors, down 2.1 percent.
Also weighing on stocks was the Reuters/University of Michigan Surveys of Consumers, which showed preliminary sentiment was little changed in early January as worries over income and high unemployment offset news of an improving economy.
Intel Corp , another Dow component and the world's largest chipmaker, late Thursday posted fourth-quarter results that beat Wall Street forecasts. Tech stocks helped the market end higher on Thursday.
Intel shares fell 1.9 percent to $21.06 on Friday on what analysts said was profit-taking.
Data on U.S. consumer prices on Friday showed a modest rise last month while a cold snap lifted industrial output, suggesting the economy was growing but not generating enough inflation to trouble the Federal Reserve. ID:nN15217547
Office supplies retailers advanced after JPMorgan analysts upgraded both OfficeMax Inc and Staples Inc . OfficeMax surged 5.4 percent to $14.57 and Staples was up 1.1 percent at $25.28.
Congressional Democrats were close to a final deal on a landmark U.S. healthcare overhaul on Friday, but negotiators still must resolve thorny issues on how to pay for the plan, and the structure of the new insurance exchanges created under the bill.
The Morgan Stanley Healthcare Payor index <.HMO> was unchanged while the S&P Healthcare index <.GSPA> lost 1 percent.
(Editing by Kenneth Barry)