US stocks slide as disappointing bank earnings prompt end-of-week sell-off

US stocks slide as disappointing bank earnings prompt end-of-week sell-off

REUTERS/Brendan McDermid

US stocks sank on Friday as investors digested disappointing bank earnings and a December slump in retail sales.Retail sales shrank 0.7% in December as COVID-19 lockdowns cut into holiday-season spending, according to Census Bureau data published Friday. Economists expected sales to hold flat from November.Less-than-stellar earnings reports from Citigroup and Wells Fargo led financials to drag on the S&P 500.While Democrats' soft Senate majority lifts the odds of Biden signing his newly announced stimulus deal, Republicans could push for higher taxes to offset its cost or a stripped-down version of the measure.Watch major indexes update live here.

US equities sank for a second-straight session on Friday amid a drop in retail sales and as President-elect Joe Biden rolled out his plan for additional fiscal stimulus.

Fourth-quarter earnings kicked off with JPMorgan beating revenue and profit expectations. The bank reported a 42% jump in net income, bolstered by the release of $2.9 billion in loan-loss reserves.

Other firms posted less positive results. Citigroup's revenue landed above estimates, but weaker-than-expected performance in its fixed-income division contributed to a miss on quarterly earnings. Wells Fargo shares slid after the firm's fourth-quarter revenue came up short of analyst estimates.

Here's where US indexes stood at the 4 p.m.