Published: Sat, January 13, 2018
Business | By Tara Barton

Facebook shares sink as United States stocks add to records

Facebook shares sink as United States stocks add to records

US stock indexes on Friday closed out what has been a stellar start to a calendar year for equity trading. These names stand to benefit the most if economic growth ratches up.

The Dow Jones Industrial Average rose by 29 percent last year and the broader S&P 500 rose 22 percent, rare and breath-taking gains that simply can not be repeated every year. The S&P 500 gained 2.31 points, or 0.083467 percent, to 2,769.87. The bank's shares rose 1.7 percent.

Earnings from big banks were mixed, with JPMorgan Chase rising 1.7 percent after beating expectations, even as profits were hit by one-time effects of the tax law changes.

Earnings for S&P 500 companies are expected to increase on an average by 12.1 percent in the quarter, with profit for financial services companies likely to increase 13.2 percent, according to Thomson Reuters I/B/E/S.

Treasury releases withholding tables for new tax law
Trump administration officials said that the guidelines should lead to bigger paychecks for 90 percent of all wage earners. Nine out of 10 taxpayers "will see a boost in their take-home pay within the coming weeks", he said said in a statement.

The energy sector (+1%) rallied again amid another strong day for crude oil, as WTI futures jumped 0.6% to $64.21/bbl, and industrials (+0.9%) were led by Boeing, which rose 2.5% to another record high.

Wells Fargo shed 0.7 percent as fourth-quarter earnings rose 17 percent to $6.2 billion, but were marred by $3.3 billion in litigation costs, some in the aftermath of the fake accounts scandal. The index was dragged by a 4 percent fall in Facebook's shares after the company started changing the way it filters posts and videos on News Feed.

Core CPI increased 1.8 percent in the 12 months through December, picking up from 1.7 percent in November.

Advancing issues outnumbered decliners on the NYSE by 2,103 to 762. On the Nasdaq, 1,445 issues rose and 969 fell.

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