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Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

US open: Stocks lower as earnings season kicks off

(Sharecast News) - US stocks were in the red early on Friday as market participants strapped themselves in for the beginning of another corporate earnings season. As of 1520 GMT, the Dow Jones Industrial Average was down 0.41% at 37,556.71, while the S&P 500 lost 0.03% at 4,778.66 and the Nasdaq Composite came out the gate 0.02% at 14,967.90.

The Dow opened 154.31 points lower on Friday, more than erasing modest gains recorded in the previous session as market participants digested key CPI data, which revealed inflation had risen more than expected in December, with consumer prices rising by 3.4%, up from 3.1% in November and above economists' expectations of a 3.2% increase.

Today's primary focus was the corporate space, with Bank of America reporting a drop in M&A fees and taking a hit from regulatory charges, while Bank of New York Mellon also posted a 50% drop in fourth-quarter profits as a result of one-time charges.

Wells Fargo, on the other hand, delivered 9% quarterly growth in net income, but warned of lower interest income in the new year, while JPMorgan Chase said it had seen record annual profits thanks to an interest rate windfall.

Elsewhere, Citi announced that it will cut 20,000 jobs as it announced a massive $1.8bn quarterly loss, driven largely by charges ranging from currency exposure in Argentina and Russia, while BlackRock revealed it was spending $12.5bn in a cash-and-shares deal to take over Global Infrastructure Partners, a private infrastructure fund manager based in New York.

Delta Air Lines and UnitedHealth will also report their latest quarterly figures on Friday.

On the macro front, the US producer price index unexpectedly fell in December, according to the Labor Department, dropping 0.1% month-on-month but remained 1% higher than the same time a year ago. Excluding volatile food and energy prices, core PPI was flat against the estimate for a 0.2% increase

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Verizon Communications Inc. (VZ) $38.51 1.60% Chevron Corp. (CVX) $147.00 1.18% Walt Disney Co. (DIS) $90.42 1.08% JP Morgan Chase & Co. (JPM) $171.77 0.86% Johnson & Johnson (JNJ) $162.13 0.61% Amgen Inc. (AMGN) $304.68 0.52% International Business Machines Corporation (CDI) (IBM) $162.99 0.51% Salesforce.Com Inc. (CRM) $272.43 0.39% Coca-Cola Co. (KO) $60.03 0.36% Procter & Gamble Co. (PG) $150.88 0.25%

Dow Jones - Fallers

Unitedhealth Group Inc. (UNH) $523.30 -3.04% Walgreens Boots Alliance, Inc. (WBA) $23.59 -1.83% Boeing Co. (BA) $219.65 -1.35% Intel Corp. (INTC) $47.08 -1.18% Home Depot Inc. (HD) $355.02 -0.42% American Express Co. (AXP) $184.28 -0.41% Nike Inc. (NKE) $105.57 -0.31% Merck & Co. Inc. (MRK) $118.27 -0.14% Goldman Sachs Group Inc. (GS) $379.43 -0.08% Walmart Inc. (WMT) $160.99 -0.07%

S&P 500 - Risers

Bank Of New York Mellon Corp. (BK) $54.64 3.63% Cognizant Technology Solutions Corp. (CTSH) $77.49 3.49% National Oilwell Varco Inc. (NOV) $19.99 2.75% HF Sinclair Corporation (DINO) $54.52 2.44% Healthpeak Properties, Inc (PEAK) $20.75 2.24% Valero Energy Corp. (VLO) $130.80 2.19% Advance Auto Parts (AAP) $63.79 2.18% Accenture Plc (ACN) $355.51 2.17% Hanesbrands Inc. (HBI) $4.28 2.11% Alexandria Real Estate Equities Inc. (ARE) $128.51 2.10%

S&P 500 - Fallers

United Airlines Holdings Inc (UAL) $41.18 -7.48% American Airlines Group (AAL) $13.52 -7.33% Delta Airlines Inc. (DAL) $39.46 -6.63% Southwest Airlines Co. (LUV) $28.51 -4.44% Alaska Air Group Inc. (ALK) $35.46 -4.14% CVS Health Corp (CVS) $76.29 -3.34% Ralph Lauren Corp (RL) $138.12 -3.09% Unitedhealth Group Inc. (UNH) $523.30 -3.04% Norwegian Cruise Line Holdings Ltd (NCLH) $17.00 -2.91% H&R Block Inc. (HRB) $45.39 -2.78%

Nasdaq 100 - Risers

Qurate Retail Inc. (QRTEA) $0.95 4.23% Cognizant Technology Solutions Corp. (CTSH) $77.49 3.49% Liberty Global plc Series C (LBTYK) $20.12 2.24% Check Point Software Technologies Ltd. (CHKP) $159.76 2.21% Regeneron Pharmaceuticals Inc. (REGN) $933.53 1.92% Liberty Global plc Series A (LBTYA) $18.98 1.85% Mercadolibre Inc. (MELI) $1,617.00 1.59% Wynn Resorts Ltd. (WYNN) $95.23 1.42% Gen Digital Inc. (GEN) $23.34 1.37% Vertex Pharmaceuticals Inc. (VRTX) $433.99 0.91%

Nasdaq 100 - Fallers

American Airlines Group (AAL) $13.52 -7.33% Tesla Inc (TSLA) $222.80 -1.95% Walgreens Boots Alliance, Inc. (WBA) $23.59 -1.83% Baidu Inc. (BIDU) $115.41 -1.63% Micron Technology Inc. (MU) $82.12 -1.52% Illumina Inc. (ILMN) $139.17 -1.30% Intel Corp. (INTC) $47.08 -1.18% Expedia Group Inc. (EXPE) $149.51 -1.12% Asml Holdings N.V. (ASML) $710.77 -1.08% Booking Holdings Inc. (BKNG) $3,525.60 -0.75%

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Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

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