US close: Stocks lower as traders digest Q3 banks earnings

13th Oct 2026 22:51

(Sharecast News) - Major indices closed lower on Tuesday as third-quarter bank earnings began to roll in.

At the close, the Dow Jones Industrial Average was down 0.35% at 51,670.10, while the S&P 500 dipped 0.02% to 7,805.45 and the Nasdaq Composite saw out the session 0.15% softer at 27,204.38.

The Dow closed 180.45 points lower on Tuesday, reversing gains recorded in the previous session.

Tuesday's primary focus was Q3 earnings from a number of the nation's largest banks, with JPMorgan Chase posted a rare setback in fixed‑income trading, with revenue down 4% year‑on‑year in Q3 - its first decline in more than two years - leaving total trading income at $10.3bn, slightly short of forecasts, while Wells Fargo also delivered mixed numbers, with Q3 earnings beating expectations at $1.87 a share but revenue undershooting at $21.87bn, even as net interest income and loan growth both rose.

Goldman Sachs posted a stronger third‑quarter profit, with earnings up 33% year‑on‑year to $5.1bn as revenue rose 23% to $18.7bn, although activity eased from the prior quarter's exceptionally strong showing, while Citigroup also delivered a solid set of numbers, reporting net income of $5.2bn and earnings of $2.85 a share, ahead of forecasts, while revenuse climbed 8% to $23.8bn as Citi's fixed‑income desk recorded its best third quarter in at least a decade on stronger spread‑product and FX trading.

Outside of the banks, Johnson & Johnson reported 5.9% sales growth to $25.4bn, lifting full‑year guidance as strong operational performance offset a one‑off charge tied to talc litigation and recent M&A, while UnitedHealth Group raised its profit outlook for the third time this year after Q3 earnings topped expectations, helped by lower‑than‑anticipated medical costs and Domino's Pizza posted higher profit and revenues, with Q3 earnings of $4.60 a share beating forecasts, although sales growth continued to slow despite stronger order volumes and higher franchise royalties.

On the macro front, the National Federation of Independent Business' small business optimism index slipped 0.8 points in September to 97.9, falling just below its long‑term average, while the uncertainty index edged up to 90, remaining well above historic norms. Labour quality and availability stayed the most‑cited problem for a third straight month, reported by 26% of owners, while inflation was the second‑largest concern, rising to 20% of respondents, far above its historical average. Expectations for better business conditions weakened again, with a net 6% of owners anticipating improvement over the next six months. Only 7% said it was a good time to expand, down sharply from August.

Elsewhere, US existing home sales ticked higher in September, according to the National Association of Realtors, rising 1.5% on the month but falling 2.2% year‑on‑year to an annualised 3.99m units. Sales increased in the South and West, were flat in the Midwest, and declined in the Northeast, while all four regions posted annual drops. Total inventory climbed to 1.60m homes, up 1.9% from August and 4.6% from a year earlier, leaving supply unchanged at 4.8 months. The median existing‑home price rose 1.3% year‑on‑year to $417,500, marking the 39th straight month of annual price gains.

Reporting by Iain Gilbert at Sharecast.com

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