Major U.S. stock indexes fall for a third straight day as investors weigh earnings reports from big U.S. banks and geopolitical tensions. Fred Katayama reports.
Wall Street finished in the red as investors weighed earnings from big banks and President Donald Trump's comments on the strength of the dollar. For the week, all indices were lower as well. Investment strategist at Edward Jones, Kate Warne, is cautiously bullish about the prospects for stocks. (SOUNDBITE) KATE WARNE, INVESTMENT STRATEGIST, EDWARD JONES (ENGLISH) SAYING: "I do think stocks are going to move higher, and they'll be supported by stronger earnings, as well as better economic growth, But we're expecting more volatility ahead, not necessarily during the earnings season, because that is a positive catalyst in our view, but, as we look forward, we know that investors have been extremely resilient in the face of higher geopolitical risk." Warne says financials are trading lower mostly because of a slowdown in loan growth and because the market is concerned about a potential delay in Trump's deregulation measures. Wells Fargo stock fell after the bank reported a big drop in mortgage banking revenue. JPMorgan and Citigroup also slipped, despite reporting better-than-expected quarterly profits. Adding pressure - geopolitical tensions in Syria and North Korea, and a report of a bomb dropped by the United States in eastern Afghanistan. In economic news, the University of Michigan U.S. consumer sentiment index unexpectedly strengthened in April. Consumer optimism on current economic conditions climbed to its strongest level since November 2000. In Europe, stocks also fell weighed down by banks.