Business

Goldman and Citigroup profits fail to cheer Wall Street

NYSE traders Image copyright Reuters

US share indexes closed flat on Wednesday despite strong results from Goldman Sachs and Citigroup.

Discount retailer Target saw its shares fall more than 5% after it reported a decline in sales over Christmas and warned that future profits would be lower than expected.

The key Dow Jones index was 22 points or 0.11% lower at 19,804 at the close

The dollar recovered ground after it fell on Tuesday.

The broader S&P 500 was 0.18% higher at 2,271, helped by gains in financials following comments by Federal Reserve Chair Janet Yellen that it "makes sense" to gradually lift interest rates

The Nasdaq was marginally higher, up 0.31% at 5,555.

Goldman Sachs reported a jump in profits to $2.15bn, but its share price slid by a small margin.

Citigroup also benefited from what is being termed the "Trump rally" - a boost to business and growth expectations because the future president is expected to increase spending on infrastructure and lighten regulation for banks.

Citigroup shares finished 1.7% lower. But bank shares are already trading significantly higher since November's election.

Retailers Macy's and Kohl's also saw their share prices slide as they warned of a worse than expected outlook.