Stocks rise as bank results boost Dow for seventh consecutive session

Stocks rise as bank results boost Dow for seventh consecutive session

Summary
Companies
Bank ‍of ​America, Morgan Stanley ‌report strong Q2 earnings
Dow notches seven-session streak of gains
June retail ⁢sales up 0.2% vs est. of 0.5%
Dow up 1.06%, S&P 500 up 0.71%, Nasdaq up 0.76%
NEW⁢ YORK, July‍ 18 (Reuters) – U.S. ​stocks advanced on⁢ Tuesday, partly boosted by ‍a round of solid ⁣bank earnings which⁣ helped put⁣ the Dow on track for⁣ its longest streak of daily⁢ gains in more‍ than two ⁤years.
Morgan Stanley (MS.N) shares ‍jumped 6.45%, their biggest one-day‌ percentage‌ climb since Nov.​ 9, 2020 after⁤ topping expectations⁣ as growth⁣ in ⁢the bank’s wealth management business offset ⁤lower trading revenue.
Reuters ⁣Graphics
Bank of America (BAC.N) gained 4.42% after ⁢its​ profit beat ⁢expectations​ by earning more from customers’ loan payments, while⁢ investment banking and trading‌ fared better than ⁣expected.
Shares of other banks also rose on Tuesday, ‌with Bank of New York ⁣Mellon‌ (BK.N) up 4.11%, and PNC Financial⁢ (PNC.N) up 2.51%, after they ‌reported ​quarterly results.
“They⁣ are ‍surprising.⁢ This morning all the ​banks⁤ reported, all⁤ beat earnings expectations‍ and‍ all except PNC ⁤beat revenue‍ expectations,” said Tim Ghriskey, senior portfolio⁢ strategist at Ingalls &‌ Snyder in‌ New⁤ York.
“I always⁣ hate ​to extrapolate the big bank earnings, which are always the ⁤first‌ ones, ‍to⁢ the​ rest ⁣of the ⁤market. We ⁢have a lot ⁢more coming here but earnings ⁤estimates have been‍ brought down and banks‍ are able​ to surprise.”
The Dow Jones Industrial Average ⁣(.DJI) rose ⁤366.58 points, or ‍1.06%, to 34,951.93, the S&P 500 ​(.SPX) gained ⁢32.19‌ points, or 0.71%, at 4,554.98 and the Nasdaq Composite (.IXIC) added 108.69 points, or 0.76%, at 14,353.64.
The Dow registered its seventh-straight session ‍of gains,​ its ​longest streak since March 2021, ‌and closed at its ‌highest‍ level since April 2022.
Some of the ⁣largest ⁣U.S. banks such as JP Morgan (JPM.N) last week cited a‍ profit⁢ boost from ⁣higher​ rates⁢ and ​indicated the economy ​remained resilient.
The S&P 500 banks index (.SPXBK)⁣ ended ⁣1.90% ⁤firmer at 317.02, its highest closing level since March ⁢8, when the start of a mini-bank crisis created a ⁣sharp sell-off in ​the sector. ⁤The KBW regional banking ⁤index (.KRX) also ⁢climbed⁤ 4.10% to 96.25 , its⁢ highest close since March 21.
Charles Schwab (SCHW.N) jumped 12.57%, ​the best⁣ performer on the⁣ S&P ⁢500, after the brokerage posted a ⁢smaller-than-expected ​drop in quarterly profit.
Technology (.SPLRCT), ‍up ‍1.26%, was the best performing sector, as​ Microsoft (MSFT.O) shares gained 3.98⁣ to a record close of‍ $359.49 after ⁢announcing it ‍would charge more ⁢to ‌access ‍new artificial⁢ intelligence features in its Office‌ software.
Equities​ have rallied recently, with the S&P 500 ⁢and Nasdaq⁢ climbing to 15-month‌ highs on data ⁤showing economic resilience,⁤ cooling inflation ‍and a⁣ solid labor⁢ market.
Data released early ⁣on ‍Tuesday showed⁢ retail​ sales⁢ rose less than ⁣expected in June on a decline in building materials and service⁤ station receipts, ‌although consumers⁤ boosted or maintained their spending​ levels. In…

Source from www.reuters.com

Exit mobile version