Priya Patel
The fourth-quarter earnings season has officially begun with four of Wall Street’s top banks reporting rather bleak results. JPMorgan Chase, the largest U.S. bank by assets, reported lower profit due to a $2.9 billion fee associated with the government’s takeover of some regional banks. Citigroup also reported a loss and announced plans to cut 10% of its workforce. Bank of America’s net income fell over 50% from the previous year, while Wells Fargo reported higher earnings but warned of lower interest income in the future. In other news, an unexpected decline in wholesale prices signaled a potential decline in inflation. The producer price index fell 0.1% in December, contrary to expectations of a 0.1% increase. The Dow Jones Industrial Average closed 0.3% higher for the week, while the S&P 500 and Nasdaq ended the week slightly up. European stocks finished higher, but shares of Burberry fell 7% after a profit warning. Lai Ching-te won Taiwan’s presidential election, securing the Democratic Progressive Party’s third straight win. Warren Buffett stated that he is unlikely to invest in airline stocks again due to disappointing profit forecasts and ongoing issues in the industry. Overall, the outlook from Wall Street’s banks was cautious, with concerns about the impact of possible interest rate cuts and inflation.
