Stocks are flat Friday as regional banks struggle to recover: Live updates

Stocks struggled for direction Friday as concerns around regional banks and the U.S. economy dampened investor sentiment.

The Dow Jones Industrial Average traded 33 points lower, or 0.01%. The S&P 500 slipped about 0.2%, and the Nasdaq Composite fell 0.3%.

Regional banks declined broadly after declining in the previous session. The SPDR S&P Regional Banking ETF (KRE) fell 0.9%. Western Alliance slipped 0.5%, while PacWest gained 0.8%. On Thursday, regional banks dropped after PacWest said its deposits fell sharply last week.

“None of the sectors are making convincing moves in either direction, reflecting a general lack of conviction in the market,” said Joe Cusick, portfolio specialist and senior vice president at Calamos Investments.

A preliminary reading on the University of Michigan’s consumer sentiment index showed a decline to 57.7 in May. Economists polled by the Dow Jones are expecting a May reading of 63.0, which would be lower than the level of 63.5 in the previous reading. The survey also showed the outlook for inflation over the next 5 years climbed to 3.2%, tying the highest clip since June 2008.

Investors are also keeping an eye on Washington as concern around debt ceiling negotiations persisted. CNBC reported that a debt ceiling meeting between President Joe Biden and congressional leaders that was set for Friday was postponed to next week.

Investors are coming off a fourth straight losing session for the Dow Jones Industrial Average, which on Thursday slid more than 200 points, or 0.66%. Disney’s decline a day after it reported poor subscriber numbers weighed on stocks. The S&P 500 declined 0.17%. By contrast, the Nasdaq Composite added 0.18%.

Meanwhile, weaker-than-expected wholesale prices data, a sign of easing inflation, failed to shield investors from ongoing concerns of a downturn ahead — particularly as a handful of stocks continue to carry the market.

Import prices were 0.4% month-over-month in April, marking the first rise so far in 2023. Economists polled by Dow Jones were expecting a 0.3% rise last month, compared to the decline of 0.6% the prior month.

As of Thursday’s close, the Dow and the S&P 500 are headed for their second negative week in a row, down 1.08% and 0.14% this week, respectively. However, the Nasdaq Composite is on pace for its third straight positive week, up 0.76%.