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US stocks slip after two record days

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US stocks have closed lower after two record-setting days, with sentiment dulled by poor US retail sales figures for March and more prospects of slow economic growth around the world.

The Dow Jones Industrial Average finished virtually flat, down 0.08 at 14,865.06.

The broad-based S&P 500 fell 4.15 points (0.28 per cent) to 1,588.86, while the tech-rich Nasdaq Composite lost 5.21 (0.16 per cent) at 3,294.95.

The losses came after the Commerce Department reported a 0.4 per cent drop in March retail sales compared with February, and a media report said that the IMF has lowered its forecast for US growth to 1.7 per cent.

“This doesn’t change our view for the first quarter but it does indicate slower momentum as the second quarter began,” Jennifer Lee of BMO Capital markets commented on the retail sales data.

Some weak signs in the first-quarter results from two banks also kept buying on hold.

Wells Fargo’s (-0.8 per cent) first quarter profits rose 22 per cent, but the bank, the largest issuer of home loans, said its pipeline of new mortgages was slowing.

Earnings at JPMorgan Chase (-0.6 per cent) rose by 33 per cent, helped by a 90 per cent decline in the company’s litigation costs and improving credit quality.

But chief executive Jamie Dimon said lending to small businesses remains weak with the uncertainty over economic growth.

That spilled over to other banks yet to report – Bank of America lost 0.8 per cent, Morgan Stanley 2.0 per cent and Citigroup 0.2 per cent.

Gold-related shares continued to fall after the gold price plunged nearly 5 per cent to $US1,486.90 per ounce, helped by news that struggling Cyprus will dump its gold reserves onto the market.

Barrick Gold lost 8.5 per cent, and Freeport McMoRan gave up 2.7 per cent.

Oil companies also lost in a general commodities rout.

ExxonMobil slipped 0.3 per cent and Chevron lost 0.8 per cent.

Bond prices rose.

The yield on the 10-year Treasury dropped to 1.72 per cent from 1.79 per cent late on Thursday, while the 30-year bond sank to 2.92 per cent from 3.00 per cent.

Bond prices move inversely to yields.