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S&P 500 in Rally Mode as Strong Economic Data Eases Recession Fears; Banks Rally

Published 07/15/2022, 02:31 PM
Updated 07/15/2022, 02:36 PM
© Reuters.

© Reuters.

By Yasin Ebrahim

Investing.com -- The S&P 500 jumped Friday, as better-than-expected economic data eased worries about the pace of slowing economic growth while Citi rallied following impressive quarterly results to help financials claw back losses from a day earlier.

The S&P 500 rose 1.7%, the Dow Jones Industrial Average rose 1.9%, or 584 points, and the Nasdaq was up 1.5%

Financials led the broader market higher, boosted by rallying bank stocks after Citigroup (NYSE:C) reported better-than-expected quarterly results, sending its shares more than 10% higher.

The Wall Street bank was helped by blowout performance in its trading business that offset weakness in investing banking revenue and an announcement that stock buybacks would be suspended.

Wells Fargo (NYSE:WFC), meanwhile, surged 6% despite reporting quarterly results that fell short on both the top and bottom lines as the bank set aside more money to cover potential losses from bad loans.

Banks stocks were also helped by steepening in yield curves as data showing the consumer remains in good shape eased some concerns the economy was headed for a significant slowdown.

Retail sales rose 1.0% in June, the strongest pace in three months, and above expectations for a 0.8%.

Following the report, economists at Jefferies pointing to the fall in gas prices, signaled optimism for a further boost in the consumer spending that could set up the economy “for much stronger GDP growth in Q3.”

UnitedHealth Group Incorporated (NYSE:UNH), a major Dow component, rose more than 2% after delivering stronger guidance as quarterly results topped estimates, driven by stronger performance in its Optum healthcare services business.

Technology continues its uptrend, led by gains in Amazon (NASDAQ:AMZN) and Meta Platforms (NASDAQ:META) with the latter up more than 4%.

Amazon was in the spotlight after it said 300 million items were sold during its annual Prime Day Sales event. “Prime Day results make us incrementally more confident in the strength of the consumer, their willingness to spend post pull forward in COVID demand, and as a result AMZN's forward topline growth," Morgan Stanley said.

Twitter Inc (NYSE:TWTR) gained more than 2% as its case against Musk for terminating his $44 billion deal to take over the company, allegedly without cause, is expected to get underway on July 19.

“There are a range of possibilities that can come from the Delaware court including settlement, breakup fee paid, deal enforced, and a myriad of other outcomes,” Wedbush said in a note.

Pinterest (NYSE:PINS) rallied more than 14% on reports activist investment firm Elliott Management reportedly took a 9% stake in the struggling social-media company, which has seen its shares slump about 50% year to date.

Latest comments

What a surprise, and entire weeks losses magically vanish in one day, and the laughingstock of the financial world "rallies" to a closing high.  Wall Street takes out the biggest financial knife in the drawer, shows their might, and plunges it into the back of America heading into another weekend.  Fraudulent, criminally manipulated JOKE.
just keep making money off that joke. we all know the downward trend will continue eventually, you can bet on it.Bottom not in yet
with all things considered, in particular the 75 bps rate hike coming up soon plus oil price rising fast again, stock market will crash
august and september will be hard. this month is just a taste of 2021 madness. but after september things will get good.
Joke? jsut option play...
what will the title be next week with big drop?!!
Biggest investment joke in the world.
How nice, no "late trade" shenanigan's during a "rally," as we have a weeks worth of mitigated losses, following by a 500+ point tightrope walk through the close.  Watch this laughable "market" rise into the close.  Friday FRAUD in living color.  No profit taking in the BIGGEST INVEVSTMENT JOKE IN THE WORLD, as the sellers magically vanish into thin air.
World on verge of collapse=- media-"strong economic data"  I don't believe a word of it,
Strong economic data means time to buy more puts.
How is banks posting terrible results and suspending buybacks "easing" anything?
Didn't you see Citigroup? They did well! Please ignore all other banks earnings. We don't like negativity here lol. Citigroup also warning us of impending economic doom but that's not a headline we want to see.
good mood 😂
Nothing to do with data … its whales crushing retail bears holding 1.5 trillion in puts . Scam on little man bear
I cashed my puts yesterday when the DOW was -600.
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