Stocks fell on Thursday as big bank earnings kicked off with disappointing results and traders weighed the possibility of even tighter U.S. monetary policy from the Federal Reserve as recession fears lingered.

The Dow Jones Industrial Average fell 0.46%, or 142.62 points, to 30,630.17, while the S&P 500 fell 0.3% to 3,790.38. The Nasdaq Composite rose 0.03% to end at 11,251.19.

Stocks closed in negative territory but far from their lows. At one point, the Dow Jones fell 628 points, while the Nasdaq and S&P 500 fell more than 2% each. Stocks were on track to end the week in negative territory.

One strategist said: “If banks are a barometer of the overall economy as well as what we’re likely to get from other earnings reports going forward, it’s going to be a bad quarter.”

It seems talk of a recession in the United States has only been on the minds of consumers this month – passing through Google searches in July. For many young investors, a recession is not an environment they are used to.

Earnings results from major banks on Thursday offered further clues to the health of the US economy.

JPMorgan Chase reported lower-than-expected earnings this morning as it set aside larger reserves to cover bad debts, a possible ominous sign for the rest of the banking industry. His buyout suspension was also a big story.

Continuing the trend, shares of Morgan Stanley fell around 0.4% on a sharp decline in investment banking revenue, while Goldman Sachs, which is due to report results on Monday, fell nearly by 3%. Big bank earnings will continue on Friday with results from Wells Fargo and Citigroup.

Banking stock results have raised new concerns that earnings estimates may have risen too much in recent months. Now it looks like the market is finally getting worried that earnings estimates, which have risen almost non-stop in the first half of this year, will now have to come down.

Last night, across all sectors, energy, materials and financials were among the worst performing sectors in the S&P 500.

Big tech stocks were mixed on Thursday, with information technology up nearly 1%. Apple shares added 2%. Qualcomm and Applied Materials were up.

In electric vehicle battery news, Ford Motors and Korea’s SK Innovation have reached an agreement to form a joint venture that will bring more battery production capacity to the United States and fuel the Detroit automaker’s ambitions. as a manufacturer of electric cars. Ford will spend about $6.6 billion over the next five years. Battery production is expected to begin around 2025, helping Ford reach its goal of selling two million electric vehicles worldwide per year by 2026.

In crypto news, crypto lender Celsius has filed for bankruptcy. The move comes a month after it froze withdrawals, raising the possibility that more than a million account holders won’t be able to get their money back. An outflow of money from crypto investments has shaken the foundations of crypto banks and start-ups.

Bitcoin futures rose 5.2%.

An Aussie dollar weakened slightly against the US dollar yesterday, buying 67.51 US cents with the US dollar index up 0.6% on overall strength.

In Australia today, very strong June labor force data made a rate hike certain at the Reserve Bank meeting on August 2nd. It’s just a size debate.

SPI futures point to a 0.8% loss today, returning yesterday’s gains as the resource sector is expected to come under pressure.

SPI futures point to a drop of 62 points.

Numbers around the world

US markets closed on a mixed note. The Dow Jones fell 0.5% to 30,630, the S&P 500 lost 0.3% to 3,790 and the Nasdaq gained 0.03% to 11,251.

Across the Atlantic, European markets closed lower. Paris fell 1.4%, Frankfurt 1.9% and London’s FTSE closed down 1.6%.

Asian markets closed on a mixed note. Tokyo’s Nikkei gained 0.6%, Hong Kong’s Hang Seng lost 0.2% and China’s Shanghai Composite lost 0.1%.

Yesterday, the Australian stock market closed up 29 points or 1.2% at 6,651.

Dividends payable

A number of companies are ready to pay eligible shareholders today, including:

Garda Diversified Real Estate Fund (ASX: GDF)

KKR Credit Income Fund (ASX: KKC)

Qualitas Real Estate Income Fund (ASX:QRI)

Russell Investments Australian High Dividend Stocks ETG (ASX: RDV)

Australian Government Bond ETF Russell Investments (ASX: RGB)


Iron ore is trading down 8.4% at US$100.25 a tonne.

Iron ore futures point to a 6.6% decline.

Gold lost $29.70 or 1.71% to US$1,705.80 an ounce.

Silver was down $0.05 at US$18.23 an ounce.

Copper fell $11.10 or 3.34% to settle at US$321.15 per pound.

Oil fell $0.52 or 0.54% to US$95.78 a barrel.


The Australian dollar at 7:10 a.m. weakened slightly against the US dollar yesterday, buying 67.51 US cents (thump: 67.66 US cents), 56.11 pence sterling, 93.79 yen and 67.38 cents euro.

Over the past 24 hours, Bitcoin has gained 4.7% to $20,653.28.

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.