US stocks had a mixed session after disappointing US retail sales data in December – Copyright AFP Ed JONES

Wall Street stocks staged a partial rally on Friday after mixed bank profits and disappointing retail sales as markets continue to weigh concerns over monetary policy tightening.

The S&P 500 and Nasdaq ended in positive territory after falling sharply earlier in the session on a day that also saw stock markets in Asia and Europe retreat.

“Market overcomes hurdles ahead of three-day weekend as investors buy intraday decline,” Briefing.com said in a summary.

The benchmark Dow lost 200 points on Friday, while the broad-based S&P 500 finished marginally positive for the day but down 0.3% for the week.

In economic data, retail sales fell 1.9% in the final month of the year, the Commerce Department said, as shoppers retreated amid the latest wave of Covid-19 and that the rise in prices weighed on consumption.

A survey from the University of Michigan showed that consumer confidence fell sharply in January, due to the Omicron wave and escalating inflation.

Banks, meanwhile, reported mixed results as JPMorgan Chase plunged after announcing record annual profits but reported higher costs, including for higher wages.

Citigroup also fell, while Wells Fargo surged after its results.

Brian Price, head of investment management for Commonwealth Financial Network, pointed to “a few negative catalysts” driving the market.

“Weak retail sales, disappointing earnings reports and forecasts from some major banks both appear to be weighing on the market,” he told AFP.

The volatility comes as markets continue to price the Federal Reserve’s likely moves after several central bank officials said this week they expect multiple interest rate hikes in 2022.

New York Fed President John Williams was the latest central bank official on Friday to signal upcoming rate hikes to fight inflation, but he said the timing and number of hikes would depend on data evolution.

The President of the European Central Bank, Christine Lagarde, also pledged to “take all necessary measures” to combat rising inflation.

Meanwhile, oil prices continued to climb on expectations of a tight crude market as demand recovers from the worst of the Covid-19 period.

“Crude oil prices continued to look resilient with concerns over geopolitical risk and a Russian incursion into Ukraine raising the stakes, as well as a continued bottom below prices,” said CMC Markets’ Michael Hewson.

“With some OPEC+ members already struggling to ramp up production to meet new production targets, concerns about supply shortages have grown,” he added.

– Key figures around 2045 GMT –

New York – DOW: DOWN 0.6% to 35,911.81 (closing)

New York – S&P 500: UP 0.1% to 4,662.85 (closing)

New York – Nasdaq: UP 0.6% to 14,893.75 (closing)

London – FTSE 100: 0.3% down to 7,542.95 (close)

Frankfurt – DAX: DOWN 0.9% to 15,883.24 (closing)

Paris – CAC 40: 0.8% down to 7,143.00 (closing)

EURO STOXX 50: DOWN 1.0% to 4,271.19 (closing)

Tokyo – Nikkei 225: 1.3% drop to 28,124.28 (closing)

Hong Kong – Hang Seng Index: DOWN 0.2% to 24,383.32 (closing)

Shanghai – Composite: DOWN 1.0% to 3,521.26 (closing)

Euro/dollar: DOWN to $1.1418 vs. $1.1455 Thursday night

Pound/dollar: DOWN to $1.3680 from $1.3706

Euro/pound: DOWN to 83.43 pence vs. 83.57 pence

Dollar/yen: UP to 114.25 yen from 114.20 yen

North Sea Brent Crude: UP 1.9% to $86.06 a barrel

West Texas Intermediate: UP 2.1% to $83.92 a barrel

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