* JPMorgan down on weak trading revenue estimate
* BofA also warns on trading revenue, down 2.2 pct
* Goldman top drag on Dow
* Oil touches 3-week low
* Indexes down: Dow 0.15 pct, S&P 0.21 pct, Nasdaq 0.26 pct
(Adds quote, updates prices)
By Sweta Singh and Tanya Agrawal
May 31 U.S. stocks were down on Wednesday as
financials tumbled after JPMorgan and Bank of America hinted at
revenue weakness in the current quarter and oil prices fell to a
JPMorgan blamed lower volatility for the decline in
trading revenue, while Bank of America said trading
revenue in the second quarter was on track to be 10-12 percent
lower than last year.
Measures of market volatility are at rock-bottom, hitting
trading desks at big banks. The U.S. stock market's main gauge
of investor anxiety closed at its lowest level in over
two decades on May 8.
"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
Financials, which have largely outperformed the broader
market on bets of fiscal stimulus and simpler banking
regulations under President Donald 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 2.5 percent.
Adding to the pressure, oil prices fell as rising Libyan
production fueled concerns that OPEC-led output cuts are being
undermined by several countries that are excluded from the deal.
"With oil also down, the thoughts of an economic slowdown
start to come up in people's minds and has created a pause in
the market euphoria," said Andre Bakhos, managing director at
Janlyn Capital in Bernardville, New Jersey.
Seven of the 11 major S&P sectors were lower, with the
financial index's 1.13 percent fall leading the
At 12:31 a.m. ET, the Dow Jones Industrial Average
was down 30.8 points, or 0.15 percent, at 20,998.67, the S&P 500
was down 5.1 points, or 0.21 percent, at 2,407.81 and the
Nasdaq Composite index was down 16.44 points, or 0.26
percent, at 6,186.75.
Shares of Michael Kors fell 9.9 percent to $32.69
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 1.4 percent at $43.04, 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 2.5 percent to $86.91 after the
chipmaker's quarterly results came in above expectations.
Declining issues outnumbered advancers on the NYSE by 1,706
to 1,122, for a 1.52-to-1 ratio on the downside. On the Nasdaq,
1,678 issues fell and 1,057 advanced for a 1.59-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 Sweta Singh; Additional reporting by Yashaswini
Swamynathan; Editing by Saumyadeb Chakrabarty)