US close: Stocks drop amid data barrage as banks underwhelm
By Benjamin Chiou
Date: Wednesday 14 Jan 2026
(Sharecast News) - US stocks posted losses for the second straight day on Wednesday as a wave of earnings reports from banks underwhelmed, prompting investors to scale back positions with markets already trading close to record highs.
Economic data also came in thick and fast on Wednesday, and was largely more positive than expected. In particular, wholesale price growth rose less than analysts predicted, though the figures "did little to alter expectations for Federal Reserve rate cuts this year", according to Axel Rudolph, senior technical analyst at IG.
The Dow and S&P 500, which both hit new all-time highs on Monday, finished down 0.1% and 0.5% respectively, while the Nasdaq dropped 1.0%, led by heavy falls from Trip.com and stocks in the software sector.
As well as bank earnings and economic data, investors were awaiting a potential US Supreme Court ruling on the White House's use of the International Emergency Economic Powers Act for tariffs. The Supreme Court was expected to make a ruling on Wednesday, delayed from Friday, though that did not arrive before the closing bell.
"It's thought the Supreme Court is leaning towards rejecting Trump's use of the act to impose tariffs, the central plank of his economic policy, which is likely ot lead to near-term uncertainty in financial markets over trade as well as economic and fiscal policy," said Saxo's Neil Wilson.
"However, the delay from Friday could indicate this is a much tighter decision than previously thought and it could be that the delay indicates justices are leaning closer to backing the administration. Market odds indicate a roughly one in four chance that SCOTUS backs the president."
Data barrage
The US producer price index rose 0.2% month-on-month in November, and by 0.1% in October, according to a delayed Bureau of Labor Statistics report due to the government shutdown. The consensus forecast was for a 0.3% increase in November.
US mortgage applications surged 28.5% in the week ended 9 January, according to the Mortgage Bankers Association of America, up from the prior week's far more modest 0.3% uptick. Applications to refinance a mortgage shot up by 40% week-on-week, while applications to purchase a home increased by 16.9%.
US retail sales rose 0.6% in November, according to the Census Bureau, rebounding from a revised 0.1% decline in October and coming in ahead of the 0.4% increase expected.
US business inventories rose 0.3% month-on-month in October, the Census Bureau also said, ahead of expectations and marking the fastest growth rate since January 2025. October's increase followed an upwardly revised 0.3% gain in September.
Finally, existing home sales surged 5.1% in December to an annualised rate of 4.35m, according to the National Association of Realtors, firmly above market expectations. The median price of existing home sales eased to $405,400 in December, a 0.4% increase year-on-year.
Banking shares fall
Banking heavyweights largely reported solid earnings for the fourth quarter on Wednesday, though Bank of America, Citigroup and Wells Fargo all posted sharp losses as the stocks pulled back after a solid performance over the past six months.
Bank of America posted improved fourth‑quarter profits as increased market volatility drove stronger client activity across its trading desks. BofA said sales and trading revenue rose 10% to $4.5bn in the period, in line with guidance issued by chief executive Brian Moynihan in December.
Wells Fargo reported an increase in Q4 profits, supported by loan growth and higher interest income across its consumer and commercial divisions. Wells Fargo posted net income of $5.36bn, or $1.62 per share, up from $5.08bn, or $1.43 per share, a year earlier.
Citigroup topped estimates with its Q4 performance as loan loss provisions came in lighter than expected and it continued to benefit from US banking deregulation. Adjusted earnings and revenues came in at $1.81 per share and $21bn, ahead of expectations of $1.67 per share and $20.72bn.
Quarterly earnings the previous session from JPMorgan were still weighing on sentiment after it posted investment banking fees that disappointed investors.
US-listed shares of Chinese travel service outfit Trip.com dropped 17% on the back of reports that regulators in China were investigating the company over the alleged abuse of leading position in the online travel market.
Quickbooks and Turbotax owner Intuit fell 6%, while software peers like Autodesk and Workday also dropped, with market reports linking the weakness to the recent buzz around Anthropic's new AI tool, Cowork, which aims to be a work assistant for those who don't code.
Dow Jones - Risers
Dow Chemical Co. (DOW) $28.26 6.44%
Intel Corp. (INTC) $48.72 3.02%
Merck & Co. Inc. (MRK) $111.01 2.54%
Johnson & Johnson (JNJ) $218.69 2.29%
Verizon Communications Inc. (VZ) $39.83 2.10%
Chevron Corp. (CVX) $167.24 2.06%
International Business Machines Corporation (CDI) (IBM) $309.03 1.94%
Procter & Gamble Co. (PG) $146.35 1.46%
Amgen Inc. (AMGN) $328.97 1.44%
Travelers Company Inc. (TRV) $271.57 0.57%
Dow Jones - Fallers
Microsoft Corp. (MSFT) $459.38 -2.40%
Cisco Systems Inc. (CSCO) $74.41 -1.40%
Nike Inc. (NKE) $65.57 -1.10%
Home Depot Inc. (HD) $375.65 -1.00%
JP Morgan Chase & Co. (JPM) $307.87 -0.97%
Boeing Co. (BA) $242.61 -0.79%
Salesforce.Com Inc. (CRM) $239.60 -0.62%
Goldman Sachs Group Inc. (GS) $932.94 -0.58%
McDonald's Corp. (MCD) $307.48 -0.42%
Apple Inc. (AAPL) $259.96 -0.42%
S&P 500 - Risers
LyondellBasell Industries (LYB) $52.10 6.84%
Mosaic Company (MOS) $27.66 5.46%
Weyerhaeuser Co. (WY) $26.62 4.60%
Northrop Grumman Corp. (NOC) $653.14 4.42%
Accenture Plc (ACN) $288.55 4.24%
Hormel Foods Corp. (HRL) $24.49 4.21%
ConocoPhillips (COP) $100.37 4.02%
Quest Diagnostics (DGX) $186.84 3.78%
Apache Corp. (APA) $26.69 3.77%
Intercontinental Exchange Inc (ICE) $172.94 3.75%
S&P 500 - Fallers
TripAdvisor Inc. (TRIP) $13.78 -7.14%
Intuit Inc. (INTU) $566.60 -6.39%
Kohls Corp. (KSS) $19.26 -5.71%
Biogen Inc (BIIB) $169.31 -5.04%
Wells Fargo & Co. (WFC) $89.25 -4.61%
Martin Marietta Mtrl (MLM) $637.22 -4.36%
Oracle Corp. (ORCL) $193.61 -4.29%
Royal Caribbean Cr (RCL) $279.14 -4.25%
Broadcom Inc. (AVGO) $339.89 -4.15%
Vulcan Materials Co. (VMC) $298.02 -4.04%
Nasdaq 100 - Risers
Kraft Heinz Co. (KHC) $24.32 3.45%
Intel Corp. (INTC) $48.72 3.02%
Texas Instruments Inc (TXN) $193.45 2.61%
Skyworks Solutions Inc. (SWKS) $59.86 2.32%
Mondelez International Inc. (MDLZ) $57.23 2.31%
Charter Communications Inc. (CHTR) $202.34 2.25%
Dollar Tree Inc (DLTR) $140.29 2.13%
Paypal Holdings Inc (PYPL) $57.66 1.94%
Gilead Sciences Inc. (GILD) $124.07 1.90%
DENTSPLY Sirona Inc. (XRAY) $12.36 1.90%
Nasdaq 100 - Fallers
Trip.com Group Limited (TCOM) $62.78 -17.05%
Intuit Inc. (INTU) $566.60 -6.39%
Biogen Inc (BIIB) $169.31 -5.04%
Broadcom Inc. (AVGO) $339.89 -4.15%
Autodesk Inc. (ADSK) $261.28 -3.45%
Expedia Group Inc. (EXPE) $290.76 -3.07%
Cadence Design Systems Inc. (CDNS) $313.17 -3.06%
Workday, Inc. (WDAY) $193.99 -2.79%
NetEase Inc. Ads (NTES) $139.00 -2.74%
Intuitive Surgical Inc. (ISRG) $546.76 -2.68%
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