Nasdaq down 0.39% (Il Sole 24 Ore Radiocor) - New York, 16 Apr - US shares were mainly lower in afternoon trade ahead of a speech by Federal Reserve chief Jerome Powell that could shed further light on prospects for interest rates.

Investors digested another round of earnings but remained on edge as bond yields continued to rise amid mounting concern Israel could stage a military response to Iran's recent drone strike and ramp up geopolitical tensions.

But as banking earnings continue to flow in, inflation and monetary policy are back centre stage with traders keen to see if elevated rates are creating problems for the industry, especially as regards debt relating to commercial real estate.

High rates pressured Bank of America in the first quarter when the banking giant's profits fell by 8%. The lender's shares were down 5% notwithstanding the fact its net income was above consensus.

Recent sticky inflation data has strengthened convictions the Federal Reserve will have to hold off longer than expected in cutting interest rates and will also have to dial down the number of cuts it makes.

On the stocks front, shares in UnitedHealth Group were up 5.7% after first quarter earnings beat expectations while Morgan Stanley rose 3.3% after first quarter diluted EPS rose to 2.02 dollars from 1.70 dollars a year earlier.

At 1735 GMT, the Dow Jones was up 9.57 points, or 0.03%, at 37,744.68 points.

The S&P 500 was 19.63 points, or 0.39%, lower at 5,042.19 points.

The Nasdaq was down 61.61 points, or 0.39%, at 15,823.41 points.

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(RADIOCOR) 16-04-24 19:39:45 (0767) 5 NNNN