* JPMorgan down on weak trading revenue estimate
* Goldman top drag on Dow
* BofA also warns on trading revenue, down 2.2 pct
* Indexes down: Dow 0.22 pct, S&P 0.21 pct, Nasdaq 0.44 pct
(Recasts, adds quote)
By Tanya Agrawal and Sweta Singh
May 31 U.S. stocks were down on Wednesday as
financial stocks fell after JPMorgan and Bank of America hinted
at revenue weakness in the current quarter.
JPMorgan Chief Financial Officer Marianne Lake said
the decline stemmed from lower volatility compared with a year
ago when the United Kingdom was preparing to vote on Brexit.
Bank of America Chief Executive Brian Moynihan said
second-quarter earnings would be hurt by a drop in trading
revenue, lower-than-expected interest rates and the sale or
shuttering of certain assets.
"There is a choppy sideways market due to the fact that
fundamentals are largely unchanged and expectations of market
friendly policies in the U.S. are being pushed to 2018," said
Stephen Wood, chief market strategist, North America, Russell
Seven of the 11 major S&P sectors were lower, with the
financial index's 1.3 percent fall leading the
Financials, which have largely outperformed the broader
market on bets of fiscal stimulus and simpler banking
regulations under President Trump, are on track to decline 0.7
percent so far this year.
JPMorgan was down 2 percent on Wednesday. Goldman
Sachs fell 3 percent and was the biggest drag on the Dow.
Bank of America was down 2.2 percent.
At 10:40 a.m. EDT, the Dow Jones Industrial Average
was down 46.17 points, or 0.22 percent, at 20,983.3, the S&P 500
was down 5.15 points, or 0.21 percent, at 2,407.76 and
the Nasdaq Composite was down 27.40 points, or 0.44
percent, at 6,175.79.
The Federal Reserve issues its Beige Book at 2 p.m. ET (1800
GMT), a compendium of anecdotes on the health of the economy,
that will likely provide further evidence that the economy
continues to strengthen giving the Federal Reserve impetus to
raise rate next month.
Traders currently see an 86.6-percent chance of a
quarter-point rate hike at the Fed's June meeting, according to
Thomson Reuters data.
Shares of Michael Kors fell 9.4 percent to $32.88
after the luxury fashion retailer gave a bleak full-year
forecast and said it would shut more than 100 full-price retail
stores in the next two years.
Mallinckrodt was down 1.1 percent at $43.12, after
sources said the drugmaker is exploring a sale of its generic
drug unit, in a deal that could fetch as much as $2 billion.
Analog Devices rose 3.9 percent to $88.06 after the
chipmaker's quarterly results came in above expectations.
Declining issues outnumbered advancers on the NYSE by 1,816
to 928, for a 1.96-to-1 ratio on the downside. On the Nasdaq,
1,842 issues fell and 771 advanced for a 2.39-to-1 ratio
The S&P 500 index showed 28 new 52-week highs and 11 new
lows, while the Nasdaq recorded 82 new highs and 70 new lows.
(Reporting by Tanya Agrawal; Additional reporting by Sweta
Singh; Editing by Saumyadeb Chakrabarty)