Jan 15 Reuters Wall Streets main indexes were set to slip on Friday as incoming President Joe Bidens 1.9 trillion stimulus plan sparked fears of an increase in taxes, while investors parsed quarterly reports from major U.S. lenders.
Shares of JPMorgan Chase Co, Citigroup Inc and Wells Fargo Co, which had seen a strong rally in the runup to earnings, were all down even as the banks posted betterthanexpected fourthquarter profits.
JPMorgan fell 1.7 following a sevenday winning streak that had pushed the stock about 12 higher.
The bank stocks have been running here for a couple of weeks now so a lot of good news has already been priced in, said Dennis Dick, a trader at Bright Trading LLC in Las Vegas.
Wall Streets main indexes are set to wrap up the week slightly lower after climbing to record highs recently, driven by growthsensitive cyclical stocks on bets of a hefty fiscal package and optimism about vaccine distribution.
Bidens stimulus package proposal, unveiled on Thursday, includes 415 billion to accelerate the distribution of vaccines, some 1 trillion in direct relief to households, and roughly 440 billion for small businesses and communities particularly hard hit by the pandemic.
Some investors worried that the government will need to fund the spending through tax hikes.
Bidens concern is not the stock market, his concern is Main Street and thats a good thing… but that tells you theres going to be an increase in corporate taxes, Bright Trading LLCs…