US equity markets stumbled last Friday in light volume trading as the Financial sector added to the geopolitical and trade tensions weighing on the markets - Dow down -123-points or -0.50% and The broader S&P500 shed -0.29%, with the Financials sector (down -1.5%) pacing the losses despite some upbeat quarterly earnings results. Energy was the best performing primary sector, up +1.09%. JPMorgan Chase & Co fell -2.7% despite posting first quarter earnings (US$8.71B or US$2.37 per share versus consensus estimates of US$2.28 per share) and revenue that topped consensus analyst estimates. JPMorgan Chase & Co Chief Executive Officer (CEO) Jamie Dimon said that "the environment is intensely competitive and lending was flat for the quarter." Citigroup Inc (down -1.55%) similarly fell despite reported better-than-expected headline first quarter numbers, per share earnings of US$1.68 versus consensus estimates of US$1.61. Wells Fargo & Co lost -3.4%, with the bank recording a +5.5% rise in first quarter profit to US$5.94B (or US$1.12 per share versus consensus estimates of US$1.06 per share), while revenue declined to US$21.9B from US$22.3B. A number of traders cited a "buy the rumour, sell the fact" response given expectations are very high for earnings growth. The technology-centric Nasdaq lost -0.47%. However, President Trump's decision on Saturday mornning AEST to launch precision military strikes in Syria in a joint operation with the United Kingdom and France overshadowed last Friday's market developments. The United Nations (UN) Security Council on Saturday (14 April) soundly rejected Russia’s call to condemn the United States and its allies for striking Syria’s chemical weapons stockpile. Russia, China and Bolivia voted in favor of Moscow’s emergency resolution, well short of the nine “yes” votes Syria’s main ally needed. The Wall Street Journal has also carried reports that President Trump has asked two top ecnomic aids to explore the US rejoining negotiations on the Tran-Pacific Partnership (TPP). For the week, the Dow gained +1.79%, S&P500 +1.99% and Nasdaq +2.77%.
