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U.S. stocks were rising as strong bank earnings lift Wall Street

Published 07/14/2023, 10:04 AM
Updated 07/14/2023, 11:03 AM
© Reuters.

Investing.com -- U.S. stocks were rising after three big banks reported strong second quarter profits.

At 10:59 ET (14:59 GMT), the Dow Jones Industrial Average rose 101 points or 0.3%, while the S&P 500 rose 0.1% and the NASDAQ Composite rose 0.2%.

Banks post profit gains

JPMorgan Chase & Company (NYSE:JPM) shares rose 0.5% after it said profit rose 67% on a boost from lending as interest rates rose. Wells Fargo & Company (NYSE:WFC) also rose 0.6% after notching a 57% gain in profit. Citigroup Inc. (NYSE:C) reported better-than-expected profit after a strong showing in personal banking and wealth management. Shares were down 2.1%.

Among other earnings on Friday, UnitedHealth Group Incorporated (NYSE:UNH) rose 6.4% after beating profit estimates and saying expenses were lower than forecast.

Nasdaq, S&P on track for strong week

Earnings for the stocks that make up the S&P 500 are expected to fall 6.4% in the second quarter, according to Refinitiv.

Strong earnings could help lift stocks after a rally that has the Nasdaq poised to mark its best week since the middle of March. Both the Nasdaq and S&P hit 52-week highs this week after inflation data signaled prices are cooling faster than anticipated.

Strong economic reports stoke rate hopes

This week’s reports on consumer and producer prices in June are giving investors hope that the Federal Reserve could wind up its interest rate increases sooner rather than later, though the central bank is still expected to raise another quarter of a percentage point this month.

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The University of Michigan’s consumer sentiment reading for July was 72.6, far stronger than analyst expectations and confirming a trend that consumers are feeling better about the economy.

Fed officials have said in recent weeks they do see more rate increases this year, however. On Thursday, Fed Gov. Christopher Waller said he is not ready to call it an all-clear on inflation, suggesting two more quarter-point increases.

Microsoft raised to buy at UBS

Microsoft Corporation (NASDAQ:MSFT) shares rose 2% after the Federal Trade Commission appealed a federal court ruling that cleared the software maker’s $69 billion acquisition of gaming giant Activision Blizzard (NASDAQ:ATVI). UBS turned bullish on Microsoft, giving it a buy rating.

Latest comments

It wasn't strong earnings...it was mixed. So stop!!!!
How about that breaker fire at 11AM, predictable as the rising tide.  Remarkable how the "market" doesn't tank at 11AM during a "rally."  Fraudulent, criminally manipulated JOKE.
The market "tanks" at 11 am plenty of times.
E.g., on Wed, the market was in downtrend from 10:40am-12pm
Pretty lame of a rise.
Banks have been in the doghouse since 2008 but now they're back in the house and hogging the couch.
very good chance this is the long term top in the US markets - the global economy is slowing down rapidly with just some wealthy segments of the US consumer buying services keeping things up for now - but generally with the USD crashing meaning higher commodity prices and the base effect coming off the inflation data for next month AND the student loan repayment starting again, it won't be long before the US heads into a deep recession alongside the rest of the World that is already falling off a cliff
Strong economy is good for rate hikes!
maybe Fed will jack up 50 bps this month to stop stock mkt pumporama. highly likely.
Profit up 67% because of increased interest rates... This stinks
 "masively" is hyperbolic.
 You 1 year ago: "with the US and China economy about to crash rapidly into major recessions, the markets are going to tank - and tanking markets leads to less spending in a vicious cycle and more debt with higher interest rates just keeps the whole thing tanking badly - this is a perfect storm and way worse than 2008 when there was no crazy inflation - this is controlled demolition by the WEF of the global economy!!!"
  Chicago Fed National Financial Conditions Index (NFCI) is still negative.  It was last positive in March-May 2020.
you know what the hard part of deflation is? Stopping at 2%
If it doesn’t stop it will compensate for a while the higher inflation we had in 2022.
 a deflationary spiral into a global recession is very dangerous - mass bankruptcies and lay offs
Deflation can't start nor stop at 2%.
Funny Citibank's good earnings shares are not up
 none of the banks are up much this morning and most have given back any gains they had - the markets are about to crash - rug pull incoming!!!!
Priced in in last few days already.
 You, 6 months ago: "now watch this baby crash over the next few months."
strong bank earnings.... LOL
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