Stocks fall on Wall Street, head for another weekly loss

<p><p>Stocks fell in afternoon trading trading on Wall Street Friday, keeping the major indexes on course for their second weekly decline in a row.</p></p><p><p>The S&amp;P 500 fell 0.4% as of 12:16 p.m. Eastern. The Dow Jones Industrial Average fell 277 points, or 0.8%, to 35,835 and the Nasdaq fell 0.1%.</p></p><p><p>Banks were the biggest weight on the market. <a href=”https://apnews.com/article/business-earnings-fcb7a59b77f499a15c1600b769b033e9″ target=”—blank”>JPMorgan Chase</a> fell 5.5% after reporting that its profits fell 14% in the latest quarter from a year earlier as its trading business slumped. Citigroup fell 2.2% after reporting its latest results.</p></p><p><p>A wide range of retailers and other companies that rely on direct consumer spending also fell following a <a href=”https://apnews.com/article/business-consumer-spending-prices-retail-sales-consumer-behavior-8f403110f3cf71d911f7353a801a39c8″ target=”—blank”>weak retail sales report for December</a>. Home Depot fell 3.3% and Whirlpool fell 4.3%.</p></p><p><p>Technology stocks gained ground and tempered the market’s losses.</p></p><p><p>U.S. crude oil prices rose 1.2% and helped send energy stocks higher. Chevron rose 1%.</p></p><p><p>Bond yields rose. The yield on the 10-year Treasury rose to 1.76% from 1.70% late Thursday.</p></p><p><p>The Commerce Department reported that retail sales sank 1.9% in December after Americans cut their spending in the face of product shortages, rising prices and the onset of the omicron variant.</p></p><p><p>“That’s a lot of bad things to happen in a short amount of time in one of the strongest retail months of the year,” said Robert Cantwell, portfolio manager at Upholdings.</p></p><p><p>The disappointing retail report is the latest in a series of economic reports this week that has raised concern about inflation and its impact on businesses and consumer spending.</p></p><p><p>The Labor Department reported on Wednesday that <a href=”https://apnews.com/article/consumer-prices-inflation-c1bfd93ed1719cf0135420f4fd0270f9″ target=”—blank”>consumer inflation</a> jumped at the fastest pace in nearly 40 years last month, a 7% spike from a year earlier that is increasing household expenses and biting into wage gains.</p></p><p><p>The government agency also reported on Thursday that <a href=”https://apnews.com/article/joe-biden-business-economy-prices-inflation-4849c1e0301c226d480049c17c5aa88c” target=”—blank”>prices at the wholesale level surged</a> by a record 9.7% for all of 2021.</p></p><p><p>Rising prices have been prompting businesses to <a href=”https://apnews.com/article/why-is-inflation-so-high-5f69bed77f98221f9936ae99f96fd361″ target=”—blank”>pass more costs on to consumers</a>. Consumers have been pulling back on spending at department stores, restaurants and online as a result of higher prices and supply shortages.</p></p><p><p>Businesses are also feeling the impact from inflation. Paint maker Sherwin-Williams fell 1.9% after reporting disappointing fourth-quarter earnings because of raw materials costs and supply chain problems.</p></p><p><p>Boston Beer, which makes Sam Adams beer, slumped 6.8% after cutting its earnings forecast because of supply chain problems.</p></p><p><p>Concerns over persistently rising inflation are also prompting the <a href=”https://apnews.com/article/joe-biden-business-race-and-ethnicity-inflation-1443957d03e1c0eb3470e1c38f5956f5″ target=”—blank”>Federal Reserve</a> to trim its bond purchases and consider raising interest rates earlier and more often than Wall Street had expected less than a year ago.</p></p>