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This week the results season started in the USA. Several large banks were to go under fire before the last trading day of the week started.
JP Morgan, Citigroup and Wells Fargo all presented their results for the second quarter – and then investors got a better answer about how the banking crisis affected the industry after a rare financial thriller unfolded in March.
Storbank rose
JPMorgan Chase & Co posted adjusted earnings per share of $4.37 in the second quarter of 2023 on revenue of $41.3 million. Net revenues ended at $14.5 billion, according to the company’s quarterly report on Friday. In advance, earnings of $3.99 per share and revenue of $38.96 billion were expected, according to the Refinitiv consensus. The share rose over three percent in pre-trade and it was therefore expected that the arrows would point upwards for the share at the stock market opening. The share ended the trading day with an increase of 0.6 percent. Citigroup had an adjusted profit per share of 1.37 dollars in the second quarter of 2023 from a turnover of 19.4 billion dollars, the bank said on Friday. Earnings per share of $1.30 and revenue of $19.27 billion were expected, according to the Refinitiv consensus. The share fell four percent. Wells Fargo had a turnover in the period of 20.53 billion dollars, against the expected 20.07 billion dollars. The company achieved earnings per share of USD 1.25 in the second quarter of 2023, the bank said on Friday. A profit per share of $1.15 was previously expected, according to estimates obtained by Refinitiv. The share fell 0.2 percent.
The mood turned
Friday started with the same optimism among investors on Wall Street as earlier this week, and at the opening there was an increase in the three key indices. In the middle of the trading day, however, the mood turned for some of them.
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This is how it looked at closing at 10 p.m. Norwegian time:
The Dow Jones Industrial Average, which consists of 30 handpicked stocks believed to be important, rose 0.3 percent The Nasdaq Composite, which is dominated by technology stocks, fell 0.1 percent The composite S&P 500 index, which consists of 500 of the largest listed companies, fell 0.1 percent
The previous four days ended the indices with an increase. Both the Nasdaq and the S&P 500 reached annual records during the week, the indices rose on Wednesday to a level they had not seen since April 2022. The Dow Jones, for its part, is leaving behind its best since March this year.
Some of the investors’ optimism comes from the positive inflation figures they have been served. On Wednesday, it emerged that price growth in the US economy in June was markedly down from the previous month.
The result was a total inflation of three per cent on an annual basis, yet core inflation continues to remain high at 4.8 per cent. On Thursday, the producer price index for June was published – and it turned out that it rose less than expected.
The PPI, which measures what wholesalers pay for goods, rose 0.1 per cent in June on an annual basis. Core PPI, which excludes food and energy prices, rose 0.1 per cent. (Terms) Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using links, which lead directly to our pages. Copying or other forms of use of all or part of the content may only take place with written permission or as permitted by law. For further terms see here.
2023-07-14 20:48:45
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