Stocks edge lower as big banks report earnings

U.S. stocks ended Friday higher after key earnings reports from financial heavyweights.

The S&P 500 (^GSPC) added 0.4%, while the Dow Jones Industrial Average (^DJI) increased by 0.3%. The technology-heavy Nasdaq Composite (^IXIC) was up roughly 0.7%, closing upward for sixth consecutive day, the longest streak since 2021. The Nasdaq and S&P 500 notched their biggest weekly gains in about two months.

The yield on the benchmark 10-year U.S. Treasury ticked up slightly to 3.5%. The dollar index showed little change.

Stocks pared early losses after the University of Michigan consumer sentiment survey for January rose to a nine-month high of 64.6 from 59.7 last month. The expectations index rose to 62.0 compared to 59.9 last month.

The news provided a more optimistic outlook after a downbeat tone from America’s biggest banks, who took center stage to kick off the fourth quarter’s earnings season. Their earnings showed continued resilience in the face of economic headwinds, though many said they were taking steps to prepare for a recession in the U.S.

JPMorgan (JPM) posted better-than-expected fourth-quarter earnings, as CEO Jamie Dimon said the the U.S. economy “remains strong.” However, the bank said its central case for this year is a mild recession. JPMorgan said earnings for the three months ending in December were pegged at $11.1 billion, or $3.57 per share, up 7.2% from the same period last year.

Bank of America (BAC) reported fourth-quarter earnings that showed the bank’s…