NEW YORK (AP) – The stock exchanges in New York have traded with a profit after previous minuses. New data on consumer confidence in the United States boosted sentiment on the trading floors. Large banks were in the spotlight after the presentation of their quarterly results.
The Dow Jones index ended 0.3 percent higher at 34,302.61 points. The S&P 500 rose 0.4 percent to 3999.09 points and the predominantly tech stock Nasdaq gained 0.7 percent to 11,079.16 points.
A poll by the University of Michigan showed that Americans expect less sharp price increases than before. This also boosts consumer confidence. In markets, this fueled hopes of less rigorous rate hikes by the Federal Reserve to contain inflation, which is favorable for equities.
Statutory debt ceiling
At the same time, the US federal government is approaching the statutory debt ceiling. If that cap is not raised, the US government will only be able to meet its financial obligations for a limited period of time. Republican members of Congress are demanding that Joe Biden’s administration cut spending before agreeing to such an increase.
US banks mostly ended in profit after their figures were published, after initial negatives. Bank of America rose 2.2 percent. The second-largest bank in the US posted more profit than expected last quarter. The bank saw a sharp rise in interest income, among other things, due to the higher interest rates. The financial group did set aside more money for loans that may not be repaid.
Set money aside
JPMorgan Chase, the largest US bank, also had to set aside more money for so-called bad loans due to the worsening economic conditions. Still, the stock gained 2.5 percent. Wells Fargo (plus 3.3 percent) also put more money in the straw pot and saw its quarterly profit fall. Fines were also involved. Citigroup also saw profit fall due to disappointing performance in the investment banking segment, but rose 1.7 percent.
MGO Global, the fashion company that operates footballer Lionel Messi’s lifestyle brand, rose sharply after its stock market debut, but completely lost that profit. After an increase of more than 230 percent, the share ended 7 percent lower.
The euro was worth $1.0831 against $1.0820 the day before. A barrel of US oil became 2 percent more expensive at $ 79.97 per barrel. Brent oil cost 1.6 percent more, at $85.37 a barrel.
