(New York) The New York Stock Exchange moved into positive territory on Friday, driven by multiple announcements of favorable quarterly results for banks.
Published at 9:39 a.m. Updated at 10:23 a.m.
After the first exchanges, the Dow Jones index advanced by 0.75%, the NASDAQ, with a strong technological color, increased by 0.19% and the S&P 500 by 0.53%.
On Thursday, Wall Street interrupted a series of four sessions in the green after the publication of inflation in the United States (CPI index) a little higher than expected over one year, in September, at 3.7%.
The Dow Jones lost 0.51% to 33,631.14 points, the NASDAQ lost 0.63% to 13,574.22 points and the S&P 500 fell 0.62% to 4,369.61 points.
Yields on Treasury bills reacted to this stubborn inflation by climbing again on Thursday after having fallen all week.
On Friday, JPMorgan, Wells Fargo, Citigroup and Blackrock revealed their quarterly results. These figures will be scrutinized to assess whether banks are prepared to endure higher interest rates for longer.
The American bank JPMorgan Chase announced a sharp increase in net profit in the third quarter and said it expected inflation to remain high for some time. The largest US bank by assets posted a profit of $13.15 billion (+35%). JPMorgan stock gained 4.40% as of 9:40 a.m. (Eastern time).
The Wells Fargo group, the country’s fourth-largest bank, also beat analysts’ forecasts, posting a profit above expectations and raising its annual forecast for income from interest payments. The stock advanced almost 4%.
“The big banks are in focus and JPMorgan and Wells Fargo set an encouraging tone by reporting better-than-expected earnings per share,” said Sam Stovall, investment strategist for CFRA.
Citigroup also announced a solid increase in its turnover at 9% and 2% for its profit in the 3rd quarter compared to last year. The stock rose 3.21%.
As for the American asset manager BlackRock, it also exceeded analysts’ expectations in the third quarter, benefiting from the high levels invested by its long-term clients.
The manager’s turnover stood at $4.52 billion (+5% year-on-year) and net profit jumped 14% to $1.60 billion. The title nevertheless lost 1.94%.
In terms of indicators, the import price index in September in the United States provided a pleasant surprise by only increasing by 0.1% compared to +0.6% in August and +0.5% expected .
The strength of the dollar is compressing import prices. US export prices, on the other hand, increased by 0.7% last month.
“The strengthening of the dollar which makes imported goods relatively cheaper, and the slowdown in demand should keep prices excluding fuel on a downward slope,” welcomed Matthew Martin of Oxford Economics who sees a decline in prices at the consumption in general in the coming months.
Elsewhere on the stock market, Microsoft (+0.29% to $332) announced that it had finalized the takeover of video game publisher Activision Blizzard which was subject to a potential British veto.
The title rating of the game publisher Call of Duty had not resumed Friday on the NASDAQ.
Finally, the British Competition Authority (CMA) gave the green light to this operation worth some 69 billion dollars.
This acquisition will make Microsoft the third global player in video games in terms of turnover, behind Tencent and Sony, thus passing Apple.
In aeronautics, Boeing fell 3.11% while a professional press organ, The Air Current, reported that additional inspections were planned on the production of its flagship plane, the 737 MAX, which could further weigh on production rates. The action of its supplier Spirit AeroSystems fell more than 2%.
2023-10-13 13:39:59
#York #Stock #Exchange #rises #driven #banks
/cloudfront-us-east-1.images.arcpublishing.com/abccolor/EKOFNV3MARFTBO3IK3V4HNTJMU.jfif "The Ministry of Health Urges Citizens to Donate Blood in Support of the Pink October Campaign")
