US benchmark equity indexes were mostly lower intraday Tuesday as Wall Street digested the first wave of major bank earnings, with Wells Fargo (WFC) reporting third-quarter revenue that fell short of market projections despite higher-than-expected bottom-line results. The Dow Jones Industrial Average dropped 0.3% to 51,708.3 after midday, while the Nasdaq Composite slipped 0.1% to 27,225.2. The S&P 500 was little changed at 7,805.1.
The divergence in results across the sector was immediate. Wells Fargo shares fell 1.7% intraday following its report, which highlighted disappointing net interest income as a drag on revenue. Citigroup (C) shares declined 3.6% despite beating Street projections on earnings. In contrast, Goldman Sachs (GS) and JPMorgan Chase (JPM) shares edged higher; JPMorgan’s third-quarter results had missed market expectations due to investment securities losses, yet its stock found modest support. The earnings season continues Wednesday with results scheduled from Bank of America (BAC) and Morgan Stanley (MS).
Sector performance mirrored the mixed corporate news, with healthcare leading laggards and energy pacing gainers. Among other major movers, Johnson & Johnson (JNJ) slumped 6.3%, marking the worst performance on the Dow and one of the steepest declines on the S&P 500. The drop followed the company’s decision to raise its full-year outlook, although the upgraded midpoints still missed Wall Street’s estimates.
In fixed income, Treasury yields moved in opposite directions intraday. The two-year rate rose 2.3 basis points to 4.81%, while the 10-year rate fell 1.5 basis points to 5.23%. Speaking at a Tuesday Bloomberg News event, Federal Reserve Governor Christopher Waller noted that rising long-term rates are weighing on interest-sensitive industries, including housing and autos.
Waller acknowledged that increased borrowing costs inevitably affect these sectors.
Commodity markets showed limited movement in the afternoon session. West Texas Intermediate crude oil edged up 0.6% to $94.32 a barrel, while Brent crude ticked down 0.6% to $105.97. Spot gold slipped 0.4% to $4,156.82 per troy ounce, and silver lost 1.6% to $59.53 per ounce.