Market report

Bank earnings lead stocks higher

Banks led U.S. stock indexes mostly higher Friday, propelling the Nasdaq composite index to its fourth record high this week.

The Dow Jones industrial average slipped 5.27 points, or 0.03 percent, to 19,885.73. The index had been up by 61 points earlier in the day. The Standard & Poor's 500 index gained 4.20 points, or 0.18 percent, to 2,274.64. The Nasdaq added 26.63 points, or 0.48 percent, to 5,574.12. The index has set a record-high close six times this year.

Small-company stocks rose more than the rest of the market. The Russell 2000 index jumped 10.98 points, or 0.81 percent, to 1,372.05.

Investors welcomed quarterly earnings from JPMorgan Chase & Co., Bank of America Corp. and Wells Fargo & Co., all of which reported results that exceeded Wall Street's expectations. Financial stocks also benefited from an upward move in bond yields, which will lead to higher interest rates on loans.

Real estate stocks were the biggest laggard. Shares in energy companies also closed lower as crude oil prices declined. Mixed data on U.S. retail sales weighed on department store stocks.

Friday's crop of company earnings kicks off several weeks of corporate earnings reports, giving investors new insight into the health of corporate America and the economy.

"We all thought financials would do well," said J.J. Kinahan, TD Ameritrade's chief strategist. "Now how about the other areas of the economy?"

The major stock indexes headed higher early in the day, as investors reacted to earnings reports from the three banking giants, pushing their shares higher.

JPMorgan added 46 cents, or 0.5 percent, to $86.70. Bank of America rose 9 cents, or 0.4 percent, to $23.01. Wells Fargo gained 81 cents, or 1.5 percent, to $55.31.

Traders also reviewed the latest monthly snapshot of U.S. retail sales, which showed that sales rose 0.6 percent overall in December, mainly because of a pickup in online shopping and sales of autos and gasoline.

"If you back out gasoline increasing and auto sales increasing, it's not an impressive number," Kinahan said.

The retail sales report weighed down shares of several department store chains and clothing brands. By early afternoon, the market had begun to give up some of its gains.

PVH Corp., home to Calvin Klein, Tommy Hilfiger and other clothing brands, slid $3.82, or 4.1 percent, to $89.31. Nordstrom Inc. fell 83 cents, or 1.8 percent, to $44.20. Gap shed 34 cents, or 1.4 percent, to $23.66.

Benchmark crude oil fell 64 cents, or 1.2 percent, to close at $52.37 a barrel in New York. Brent crude, which is used to price oil sold internationally, slid 56 cents, or 1 percent, to close at $55.45 a barrel in London.

The slide in crude prices helped pull down shares in energy sector stocks.

Oilfield services company Baker Hughes Inc. slid $1.50, or 2.4 percent, to $60.92, while drilling services company Transocean Ltd. lost 36 cents, or 2.3 percent, to $15.48. Marathon Petroleum Corp. fell 87 cents, or 1.8 percent, to $48.38.

Business on 01/14/2017

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