The S&P 500 and Dow hit records on Friday after Morgan Stanley closed quarterly earnings reports from major US banks with a rise in profit, while optimism about a solid economic recovery set the key indicators for weekly earnings.
Nine of the 11 S&P indices traded above, only the communications services index (.SPLRCL) and information technology (.SPLRCT) declined after outperforming the previous session.
The three main Wall Street indices returned this month as optimistic economic data, a solid start to the first quarter corporate profit season and the Federal Reserve’s commitment to keep interest rates low despite rising inflation in higher demand. especially for rich technology stocks.
Morgan Stanley (MS.N) reported a 150% increase in quarterly profit on Friday, joined by JPMorgan Chase & Co (JPM.N), Goldman Sachs Group Inc (GS.N) and Bank of America (BAC.N). in strengthening the hopes of a rapid economic recovery.
However, the investment bank’s shares fell 1.2% as it also revealed a loss of almost $ 1 billion from the collapse of the private fund Archegos. Read more
Shares of JPMorgan, Goldman Sachs, Bank of America, Citigroup Inc (CN) and Wells Fargo and Co (WFC.N) rose up 1.6%.
“So far, the financial sector has reported very strong gains and this could be the key to this earnings season,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
“There seems to be a new explosion of enthusiasm as well, as we have a withdrawal of yields (bonds). It is certainly useful in terms of risk.”
Global equities also hit record highs, as China’s GDP rose to 18.3% in the first quarter. A separate set of numbers on Thursday showed that US retail sales rose the most in 10 months in March, and weekly jobless demand fell for the week ending April 10. Read more
The S&P 500 (.SPX) and blue-chip Dow (.DJI) are up for the fourth consecutive week of earnings, while the heavy-tech Nasdaq (.IXIC) is about one percent below its peak in all the times.
By 9:54 am ET, the Dow Jones industrial average (.DJI) was up 97.72 points, or 0.29%, at 34,133.71, the S&P 500 (.SPX) was up 2.95 points, or 0 .07% to 4,173.37, and Nasdaq Composite (.IXIC) fell 47.05 points, or 0.34% to 13,991.71.
The technical monitors Apple Inc. (AAPL.O), Amazon.com Inc. (AMZN.O), Tesla Inc. (TSLA.O) Microsoft Corp. (MSFT.O), which led to Wall Street’s recovery last year after the coronavirus crash, they dropped between 0.4% and 1.5%.
Shares related to Bitcoin, including the Riot Blockchain (RIOT.O) and Marathon Digital (MARA.O), fell 9% after Turkey banned the use of cryptocurrencies and cryptocurrencies for the purchase of goods and services. Read more
Advanced issues outnumbered decliners by a ratio of 1.32 to 1 on the NYSE, while declining issues outpaced outliers by 1.57 to 1 on the Nasdaq.
The S&P index recorded 136 new 52-week highs and no new lows, while the Nasdaq posted 121 new highs and 64 new lows.
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