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U.S. stocks open lower amid mixed banks earnings, weak data

Xinhua, January 14, 2015 Adjust font size:

U.S. stocks opened lower Wednesday, with the three major indices extending their losses into a fourth straight day, weighed by mixed earnings of U.S. banks and disappointing data.

JPMorgan Chase & Co. reported early Wednesday that its profit and revenue for the fourth quarter of 2014 both slipped from a year ago, missing analysts' expectations, as the companies' results were hurt by expensive legal costs.

The largest U.S. bank by asset posted net income for the fourth quarter of 4.9 billion U.S. dollars, or 1.19 dollars per diluted share, down from 5.3 billion dollars, or 1.30 dollars per share, in the fourth quarter of 2013.

Meanwhile, Wells Fargo & Company reported fourth-quarter results in line with market expectations. The biggest U.S. mortgage lender said its net income for the fourth quarter of 2014 was 5.7 billion dollars, or 1.02 dollars per share, both up 2 percent from the same period of 2013. Its total revenue for the quarter was 21.4 billion dollars, up 4 percent year-over-year.

On the economic front, U.S. retail and food services sales fell 0.9 percent in December on a seasonally adjusted basis, the biggest decline since January 2014, said the U.S. Commerce Department. The drop was much bigger than analysts' expectations.

"A weak finish for fourth quarter retail sales suggests consumers may not be quite as happy about lower gas prices as thought," said Chris Low, chief economist at FTN Financial, in a note.

Additionally, the price index for U.S. imports fell 2.5 percent in December, the biggest decline in six years, the U.S. Labor Department said. Meanwhile, export prices fell 1.2 percent last month.

Shortly after the opening bell, the Dow Jones Industrial Average slumped 193.98 points, or 1.10 percent, to 17,419.70. The S&P 500 lost 18.86 points, or 0.93 percent, to 2,004.17. The Nasdaq Composite Index dropped 36.35 points, or 0.78 percent, to 4,625.15.

On Tuesday, U.S. stocks reverse big early gains to end modestly lower despite upbeat data, as continued slide in oil prices weighed on investor sentiment. Endi