North American stocks began the day with a thump on Friday, with U.S. financials dropping after key earnings reports from Bank of America Corp. and Citigroup Inc.
The Dow Jones industrial average fell 98 points or 0.9 per cent, to 10,261. The broader S&P 500 fell 13 points or 1.2 per cent, to 3.2 per cent. In Canada, the S&P/TSX composite index fell 89 points or 0.8 per cent, to 11,653.
Bank of America fell 6.1 per cent and Citigroup fell 3.4 per cent after declining earnings in the second quarter, along with falling revenues, failed to impress investors at a time when the U.S. financial sector is about to be remade by lawmakers.
Goldman Sachs Group Inc. was a big exception. The shares rose 3.2 per cent after the company announced that it had settled civil fraud accusations with the Securities and Exchange Commission, agreeing to pay a record fine of $550-million (U.S.).
Google Inc. fell 5.7 per cent after its quarterly earnings, released after markets closed on Thursday, failed to meet high expectations.
In Canada, gold producers were weak after the price of gold retreated more than $17 an ounce, to $1191. Barrick Gold Corp. fell 1.9 per cent.
Financials followed their U.S. counterparts down. Royal Bank of Canada fell 1.1 per cent and Bank of Montreal fell 0.6 per cent.
David Berman