Positive quarterly reports from other major US banks gave Wall Street a boost on Tuesday. The Dow Jones reached its highest level in 15 months and came very close to the 35,000 point mark again. Both Morgan Stanley’s and Bank of America’s figures were well received by investors.
The best-known Wall Street index, the Dow, closed 1.06 percent higher at 34,951.93 points. The broader S&P 500 rose 0.71 percent to 4,554.98 points. The Nasdaq 100 advanced 0.82 percent to 15,841.35 points.
The economic data were mixed: The retail sector increased its sales in June only slightly compared to the previous month, which was revised upwards at the same time, and thus caused both a crying and a laughing eye. Industry produced less than expected in June. In contrast, data on inventories and the housing market, which were also published, met the estimates exactly.
However, according to broker Oanda market analyst Craig Erlam, all this data should not “really change anything about the situation for consumers or the economy”. The market has long been expecting the US Federal Reserve to raise interest rates next week. After that, there probably won’t be any more.
Bank of America Corp
(WKN: A2PURK)
Among the big bank stocks, Morgan Stanley posted the clearest gains of 6.5 percent. Bank of America (BofA) followed with plus 4.4 percent. Morgan Stanley did surprisingly well in a difficult environment in the past quarter, praised UBS analyst Brennan Hawken. RBC analyst Gerard Cassidy said that BofA had performed better than expected, not least thanks to lower risk provisions and a lower tax rate.
Morgan Stanley (WKN: 885836)
Microsoft shares reached a record high of just under $367. It went on sale with a premium of 4.0 percent to $359.49. According to analyst Jefferies Brent Thill, the price model announced by the software company for commercial use of the AI tool Microsoft 365 Copilot significantly exceeded expectations.
(with material from dpa-AFX)
2023-07-18 20:59:23
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