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US stocks retreat from records

NEW YORK: Wall Street stocks retreated from records early Thursday following solid earnings reports from JPMorgan Chase and Citigroup and data showing higher US inflation in September.

US wholesale inflation hit a five-month high in September of 0.4 percent as a temporary shutdown in Gulf Coast oil refining lifted energy prices.

Analysts said the data further boosted the odds of a Federal Reserve interest rate hike in December.

About 15 minutes into trading, the Dow Jones Industrial Average was at 22,838.78, down 0.2 percent.

The broad-based S&P 500 shed 0.2 percent to 2,549.84, while the tech-rich Nasdaq Composite Index dropped 0.3 percent to 6,586.93.

All three indices finished at records Wednesday.

Both JPMorgan and Citigroup topped analyst expectations, reporting slightly higher third-quarter profits as increased lending and the benefits of higher interest rates offset weakness in bond trading.

JPMorgan was flat and Citigroup rose 0.2 percent. Other large banks, including Wells Fargo and Bank of America, are set to report results in the coming days.

AT&T tumbled 3.4 percent as it confirmed many of its full-year financial targets, but said it expects a hit of $210 million in pre-tax earnings in the third quarter due to US hurricanes and earthquakes in Mexico.

These losses are due to damage to the company’s telecommunications network and the impact from waived charges on customers.

AT&T also said it expects a drop of 90,000 in total US video subscribers as more consumers shun traditional cable packages in favor of streaming and other “over-the-top” services.

Rival telecom company Verizon lost 1.2 percent, while cable giant Comcast slid 3.4 percent.




Copyright AFP (Agence France-Press), 2017

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