Stocks extend losses amid mixed bank earnings, retail sales miss

Stocks declined on Friday at the end of a volatile week, with investors monitoring a mixed set of bank earnings and a bigger-than-expected drop in U.S. retail sales. 

The S&P 500 and Dow dropped. The Nasdaq fluctuated between gains and losses after a 2.5% drop on Thursday. 

The Dow underperformed, dropping more than 1% at session lows as the index’s bank stock components declined after delivering earnings. JPMorgan Chase (JPM) shares fell more than 5% after the company posted lower-than-expected fourth-quarter trading revenues and rising costs as compensation expenses increased. The stock drop marked JPMorgan’s worst post-earnings decline since 2011, based on Bloomberg data. Citigroup (C) shares also fell after posting a similar miss on fixed-income and equities trading revenues for the quarter.

Peer bank Wells Fargo (WFC) shares rose, on the other hand, after posting quarterly revenue that topped estimates as both commercial and consumer loans picked up at the end of last year. 

New economic data came in weaker-than-expected on Friday, adding to the risk-off tone in markets. U.S. retail sales fell 1.9% in December month-on-month, missing estimates for an only 0.1% dip and marking the biggest drop since February 2021. November’s sales were also downwardly revised to show 0.2% monthly increase, compared to the 0.3% rise previously reported. 

Investors this week have been weighing concerning signs of lingering price pressures across the U.S. economy against assertions from…