Market Close: Stocks Fall, Bank of America Faces Penalty, Bank Results Mixed • 10/13/26

0:00See NBC Business News Update. I'm Jessica Ettinger. Wall Street opens Wednesday morning after a losing Tuesday for the major averages. Mixed results from big banks to start earnings season. The Dow was down 180 points. Johnson & Johnson shares let it lower. They were down more than 5%. The S &P 500 index only lost a point. The Nasdaq was down 41 points. Oil names hit new record highs, including Chevron, Phillips 66, Marathon Petroleum, and Valero. Apple also hit a new record high on Tuesday. Bank of America hasn't reported its quarterly results yet, but it just got hit with more than$1.2 billion in penalties over money laundering violations in the U.S.

0:47Earnings season started with quarterly reports from other big banks, four of them, J.P. Morgan, Citi, Wells Fargo and Goldman Sachs, mixed results all finished lower for the day. UBS banking analyst Erica Najarian tells CNBC that higher interest rates are an issue. You know, at the end of the day, I think investors are still reacting to where 10-year levels are on an absolute basis. And while the results are good and the optimism on the pipeline of activity is good, I think there's skepticism that, you know, we can continue on with these activity levels. And, you know, perhaps the concern is, is that, you know, the sector is a little bit toppy.

1:25The bull run for stocks notched four straight years as of Monday. How long can it last? Tudor Investments' Paul Tudor Jones tells CNBC that next year could be a tough one for stocks after possibly a post-midterm election run-up. And the major averages are riding on the AI build-out while lots of other stocks are lower this year. It still feels like 1999, a two-speed market. You've got it completely, perfectly bifurcated in the sense that you have, obviously, everything that's adopting AI and everything that's not, and they're going in opposite directions. And that was pretty much the case in 1999.

2:06You can see the entire interview with Paul Tudor Jones at CNBC.com. JPMorgan Chase blocking outside AI agents like Muse and Instinct from directly accessing customers' accounts. The agents can tell how much interest you're making on a deposit, and then it can move that money to other banks that are paying more. Here's CNBC's David Faber. These agents are going to be able to introduce efficiencies for people that allow them to move quickly or deposited funds where they're not getting a return into higher yielding instruments. But overall, I think what the bank CEOs are going to tell you is we don't it's too much liability right now until we make sure we can protect ourselves and our clients, our customers.

2:48They don't want these agents on their platforms. The latest inflation data are expected to show price increases are accelerating the CPI. Consumer price index for September will be out Wednesday morning. Economists are forecasting the new inflation rate 3.6 percent year over year. Inflation is high. Rates are high and expected to go up. The war in the Middle East. We are cautiously optimistic. Stay invested. Be prudent. Don't be greedy. Take some risk off the table and rebalance your portfolio more in line to your long-term goals so you can sleep at night. We were slightly, we had slightly increased our position in cash actually.

3:30New Burger Berman's Holly Newman-Croft on CNBC. Walmart will cover more than 250 prescriptions, including some insulin inhalers and GLP-1s for diabetes, at no cost to its employees next year. This is to retain workers and to attract new ones. On Wednesday's watch list, we do get inflation numbers, plus earnings are coming from Bank of America and Morgan Stanley. Jessica Ettinger, CNBC. Introducing Fidelity Trader Plus, the next generation of advanced trading from Fidelity. Customize your tools and charts and access them seamlessly across desktop, web, and mobile. For faster trades anywhere you go, try the all-new Fidelity Trader Plus.

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