Wall Street stocks mostly retreated from five-year highs at the opening Wednesday, despite strong bank results, on concerns about global economic growth.
The Standard Poor’s 500-stock index slipped 0.1 percent in morning trading and the Dow Jones industrial average lost 0.2 percent. But the Nasdaq composite index gained 0.2 percent.
Earnings at Goldman Sachs nearly tripled on increased revenue from dealmaking and lower compensation expenses, and its shares jumped 2.7 percent.
JPMorgan Chase said fourth-quarter net income jumped 53 percent and earnings for 2012 set a record, but its shares were flat in volatile trading.
A slow economic recovery in developed nations is holding back growth, the World Bank said, as it sharply cut its outlook for in 2013 to 2.4 percent, from an earlier forecast of 3.0 percent. That concern is weighing on markets, said Peter Jankovskis, co-chief investment officer at OakBrook Investments in Lisle, Ill. European stocks were down modestly.
Shares of Boeing, a component in the Dow, fell 3.5 percent on concerns about the safety of its new Dreamliner passenger jets. Japan’s two leading airlines grounded their fleets of 787s after an emergency landing, adding to safety concerns triggered by a ream of recent incidents.
“It’s certainly going to pull averages down given Boeing’s large market cap but I don’t see it as having broader market implications,” Mr. Jankovskis said.
Talks to take Dell private were at an advanced stage, according to media reports. Shares fell 4.6 percent after jumping more than 21 percent over the last two sessions.
Consumer prices in the United States were flat in December, pointing to muted inflation pressures that should give the Federal Reserve room to prop up the economy by staying on its ultra-easy monetary policy path.
On Tuesday, the Dow and S.P. 500 rose after stronger-than-expected retail data, with the S.P. closing at a fresh five-year high of 1,472.34.
Article source: http://www.nytimes.com/2013/01/17/business/daily-stock-market-activity.html?partner=rss&emc=rss