US Markets Drop Despite Jump in Regional Bank Stocks

U.S. equities finished lower amid concerns about the possibility of an economic slowdown and the Fed keeping interest rates high for a long period of time to fight inflation. The Dow and S&P 500 have dropped every day in this holiday-shortened week, while the Nasdaq was in the red for a second-straight session.

Home Depot (HD) was the biggest drag on the Dow, as its shares sank 4% after the Commerce Department reported housing starts and building permits fell more than anticipated last month. Shares of rival Lowe’s (LOW), as well as home builders such as D.R. Horton (DHI) and PulteGroup (PHM) slid. Shares of 3M (MMM) lost 3.5%. Procter & Gamble (PG) shares were down 2% after the consumer products maker’s profit and sales were short of forecasts. American Express (AXP) and Caterpillar (CAT) shares also dipped 2%.

It was a rough day for investors of alternative energy companies, as shares of Enphase Energy (ENPH), SolarEdge Technologies (SEDG), Generac Holdings (GNRC), and First Solar (FSLR) slumped. Northern Trust (NTRS) shares dropped as the financial services firm missed profit and sales estimates. Shares of Charles Schwab (SCHW) sank on a double downgrade from Bank of America. Discover Financial Services (DFS) warned about rising credit card losses, and its shares fell. Netflix (NFLX) shares were down ahead of its after-the-close earnings report, and they’re climbing in extended trading.

Bank Stocks Jump

Regional banks were among the best-performing stocks in the S&P 500, led by Comerica (CMA), as shares took off on the firm’s better-than-expected profit. Philip Morris (PM) shares were up following an analyst upgrade, and shares of parent Altria Group (MO) also gained. Shares of UnitedHealth Group (UNH) and other health insurers advanced. Meta Platforms (META) and Alphabet (GOOGL) shares added 2%.

Oil and gold futures each gained more than 1%. The yield on the 10-year Treasury note rose. The U.S. dollar declined against the euro, pound, and yen. Prices for major cryptocurrencies were higher.