- JPMorgan and Wells Fargo shares rise
- US Consumer Inflation Expectations Fall: Survey
- Tesla falls after electric vehicle price cuts
- Indices: Dow up 0.3%, S&P 500 up 0.4%, Nasdaq up 0.7%
NEW YORK, Jan 13 (Reuters) – The S&P 500 and Nasdaq finished at their highest levels in a month on Friday, with shares of JPMorgan Chase and other banks rising after their quarterly results, which kicked off earnings season. .
The three major indices also posted strong gains on the week, leaving the S&P 500 up 4.2% so far in 2023, and the Cboe Volatility Index (.VIX), the Wall’s fear gauge. Street, closed at a one-year low.
On Friday, financials (.SPSY) were among the sectors that gave the most support to the S&P 500.
JPMorgan Chase & Co (JPM.N) and Bank of America Corp (BAC.N) beat quarterly earnings estimates, while Wells Fargo & Co (WFC.N) and Citigroup Inc (CN) missed quarterly earnings estimates .
But shares of all four companies rose, along with the S&P 500 Banks Index (.SPXBK), which finished up 1.6%. JPMorgan shares rose 2.5%.
Still, Wall Street’s biggest banks hoarded more rainy day funds to prepare for a potential downturn and reported weak investment banking results, though they were cautious about expected revenue growth. They said the higher rates helped boost earnings.
The strategists said investors will be watching for more guidance from company executives in the coming weeks.
“This has put the focus back on earnings,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
“Although earnings were basically good, people are taking a step back, and you’ll see a wait-and-see attitude with stocks” as investors hear more from company executives.
Year-over-year earnings for S&P 500 companies are expected to have declined 2.2% during the quarter, according to Refinitiv data.
Also giving the market some support on Friday, the University of Michigan survey showed improvement in US consumer confidence, with the one-year inflation outlook falling in January to the lowest level since the spring of 2021.
The Dow Jones Industrial Average (.DJI) rose 112.64 points, or 0.33%, to 34,302.61, the S&P 500 (.SPX) gained 15.92 points, or 0.40%, to 3,999, 09 and the Nasdaq Composite (.IXIC) added 78.05 points, or 0.71%, to 11,079.16.
The S&P 500 closed at its highest level since December 13, while the Nasdaq closed at its highest level since December 14.
For the week, the S&P 500 gained 2.7% and the Dow Jones 2%. The Nasdaq rose 4.8% in its biggest weekly percentage gain since November 11.
The US stock market will be closed Monday for the Martin Luther King Jr. Day holiday.
Thursday’s Consumer Price Index and other recent data have bolstered hopes that a sustained downward trend in inflation could give the Federal Reserve room to backtrack on its interest rate hikes.
Money market participants now see a 91.6% probability that the Fed will raise the benchmark rate by 25 basis points in February.
Among the day’s falls, shares of Tesla (TSLA.O) fell 0.9% after it cut prices for its electric vehicles in the US and Europe by as much as 20% after missing delivery estimates. by 2022.
In other earnings news, shares of UnitedHealth Group Inc (UNH.N) rose after they beat Wall Street’s fourth-quarter earnings expectations, but the shares ended lower for the day.
Shares of Delta Air Lines Inc (DAL.N) fell 3.5% as the company forecast first-quarter earnings below expectations.
Volume on US exchanges was 10.77 billion shares, compared with an average of 10.81 billion for the full session over the past 20 trading days.
Advancing issuances outnumbered declining ones on the New York Stock Exchange by a ratio of 1.79 to 1; on Nasdaq, a 1.78-to-1 ratio favored advancers.
The S&P 500 posted 12 new 52-week highs and 2 new lows; the Nasdaq Composite posted 105 new highs and 8 new lows.
Additional reporting by Shubham Batra, Ankika Biswas and Amruta Khandekar in Bengaluru; Edited by Subhranshu Sahu, Shounak Dasgupta, and Grant McCool
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