Closing Bell: Market Momentum Slows Following Mixed Inflation Data, Earnings Pick Up

Key Points

• Major indexes closed modestly lower, with the S&P 500 (-0.19%), Nasdaq-100 (-0.18%), and Russell 2000 (-0.10%) all finishing in the red.
• JPMorgan topped revenue and EPS estimates, supported by trading and net interest income, but shares fell 4.19%.
• Delta exceeded Q4 EPS estimates and highlighted improving business travel and pricing power.

Markets closed modestly lower today as earnings season officially kicked off, with large banks leading off quarterly reports. The S&P 500 (SPX) declined 0.19%, while the Nasdaq-100 (NDX) slipped 0.18%. Small-cap stocks, represented by the Russell 2000 (RUT), also edged lower, down 0.10%. Energy, Consumer Staples, and Real Estate were the session’s top-performing sectors, while Financials and Consumer Discretionary lagged.

JPMorgan Fades After Earnings Beat

JPMorgan Chase (JPM) closed lower despite reporting earnings and revenue that exceeded market expectations. The company posted Q4 revenue of $46.77 billion, topping consensus estimates of $45.6 billion. Adjusted earnings per share also came in above expectations, driven by strength in trading revenue and net interest income (NII), which supported overall profitability for the quarter. However, the investment banking segment missed expectations, with investment banking fees declining 5% year over year. JPMorgan’s CFO noted that some deal flow originally expected toward the end of 2025 has been pushed into 2026, though investment banking demand is beginning to improve. Shares closed down 4.19% on the session.

Delta Air Lines Reports Solid Quarter, but Guidance Disappoints

Delta Air Lines (DAL) reported adjusted operating revenue of $14.61 billion for Q4, in line with consensus estimates. Adjusted earnings per share came in at $1.55, slightly above the $1.53 estimate. However, the company’s fiscal 2026 adjusted EPS guidance fell short of market expectations. Management noted that business travel continues to recover as corporate confidence improves, and that the airline industry is adjusting unprofitable capacity, leading to better pricing power. Delta expects these favorable trends to persist through calendar year 2026.

Market Events for Tomorrow

• 08:30 AM ET: PPI
• 08:30 AM ET: Retail Sales
• 09:50 AM ET: FOMC Member Paulson Speaks
• 10:00 AM ET: Business Inventories 
• 10:00 AM ET: Existing Home Sales
• 10:00 AM ET: FOMC Member Miran Speaks
• 10:30 AM ET: Crude Oil Inventories
• 12:00 PM ET: FOMC Member Bostic Speaks
• 12:00 PM ET: FOMC Member Kashkari Speaks
• 02:00 PM ET: Beige Book
• 02:10 PM ET: FOMC Member Williams Speaks

Notable Earnings for Tomorrow

• BAC, C, WFC

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