The major averages fell for a second week to start 2022 led by the major bank stocks declined following earnings. The Dow Jones Industrial Average slid 201 points, or 0.56%, to 35,911. The S&P 500 inched up 0.08% to 4,662 while the tech-heavy Nasdaq Composite outperformed with a 0.59% gain to close at 14,893.

Bank stocks, which had outperformed in recent weeks as interest rates moved higher, were broadly lower as their reports appeared to underwhelm investors despite strong headline numbers.

JPMorgan Chase, the No. 1 U.S. bank by assets, showed profit and revenue that topped estimates, but shares fell more than 6%. The company's earnings were helped by a large credit reserve release, and CFO Jeremy Barnum warned that the company would likely miss a key profit target in the next two years.

Citigroup's stock fell 1.3% after the bank beat revenue estimates but showed a 26% decline in profits. Shares of Morgan Stanley and Goldman Sachs, which report next week, also declined.

Meanwhile, shares of Wells Fargo added 3.7% after the bank's revenue topped expectations. CEO Charles Scharf said in a release that loan demand picked up in the second half of the year.

Shares of Netflix jumped more than 1% after announcing a price increase for U.S. and Canadian subscribers, helping the Nasdaq outperform on Friday.

Casino stocks were another bright spot on Friday after Macau's government announced it would allow just six casino licenses in the gambling hub. Las Vegas Sands surged 14%, while Wynn Resorts gained 8.6%. Oil stocks also outperformed as crude prices rose.

On the data front, retail sales were down 1.9% in December, a worse reading than the 0.1% drop expected by economists surveyed by Dow Jones. January's preliminary consumer sentiment reading from the University of Michigan came in lower than expected as Americans reported higher long-term inflation expectations.

Consumer discretionary stocks were under pressure after the report, with Bath & Body Works and Under Armour falling more than 2%. Shares of Peloton fell 2.6% after Nasdaq announced that the stock would be dropped from the Nasdaq 100 index.

It has been a rocky start to 2022 for investors. Tech stocks fell sharply in the first week of the year as the Fed signaled a more aggressive approach to inflation, accompanied by a spike in interest rates. Both of those moves partially reversed course earlier this week but had snapped back by Friday afternoon.

For the week, the Nasdaq shed 0.28%, while the Dow and S&P 500 lost 0.88% and 0.30%, respectively. This marked the third negative week in a row for the Nasdaq.

Elsewhere, money-management behemoth BlackRock posted earnings that beat on bottom-line earnings but missed slightly on top-line revenue. Shares fell 2.2%.

In other data news, business inventories for November came in higher than expected, but industrial production disappointed, declining 0.1% compared to a projected 0.2% gain.

The reports follow a week where inflation data was a key factor in markets. On Wednesday, the consumer price index showed a jump of 7% year over year, the highest reading in four decades.