The main indexes of the New York Stock Exchange closed the last session of the week with increases on the background of the good data from the first corporate quarterly earnings reports.
The blue-chip index Dow Jones Industrial Average rose by 249.50 points, or 0.95%, to 26,392.55 points. The broader benchmark S&P 500 reported a growth of 0.60% to 2,905.78 points. The technology index Nasdaq Composite rose by 0.40% to 7,979.18 points.
Financials led the broad rally on Wall Street, surging 1.9%. Materials, industrials and communication services also advanced more than 1% each, while healthcare was the lone sector in the red.
The S&P 500 ended the day just 1.1% below its all-time high of 2,940.91 points, reached on September 21, 2018. The Dow Jones is within 2% of its 2018 peak, and the Nasdaq is 1.8% below its 2018 peak.
For the week, Dow Jones added 0.4%, while S&P 500 and Nasdaq Composite are up by 0.6% and 0.7%, respectively. The main indexes returned to growth despite the turmoil during the week.
Fed funds futures, derivatives contracts investors use to wager on interest rates, indicate a 48 per cent chance the Fed will cut rates in January 2020, while they suggest investors don’t see any chance of a rate rise over the next nine months. Still, Goldman Sachs economists said in a note this week they expect the next move is “much more likely to be a hike than a cut”, saying they do not see elevated odds of a recession.
In the bond markets, the yields on 10-year and 30-year US Treasuries rose to 2.563% and 2.976%, respectively.
In forex markets, the US dollar index reported a decline of 0.21% to 96.97 points.
Corporate stocks performance
The stocks of the US investment bank JPMorgan Chase rose by 4.63% after the financial institution reported better-than-expected earnings for the first quarter. Consumer loans granted by the bank increased by 4% YoY, while the total revenue rose by 4% YoY to 29.85 billion USD, which is a record level for the bank.
However, the stocks of Wells Fargo wiped out 2.64% despite the creditor reported also better-than-expected finance results. The sharp selloff occurred after Chief Financial Officer John Shrewsberry said 2019 net interest income (NII) was now expected to fall 2% to 5% from a year ago, compared with the previous guidance range of a decline of 2% to a rise of 2%.
PNC Financial Services, meanwhile, delivered in-line earnings and a revenue beat, sending its share more than 3% higher.
The stocks of Walt Disney jumped by as much as 11.5% after the company released that will charge consumers by 7.99 USD per month (69.99 USD per year) for its streaming service, which will start on November 12. This is a dumping move against Netflix, which offers its service in the US for 11 USD per month.
Another major news in the focus of investors is the deal between US energy giant Chevron and the drilling company Anadarko. Chevron has agreed to acquire the Texas company for about 50 billion USD. Following the news, the stocks of Chevron fell by 4.9%, while those of Anadarko jumped by 32%.
Pacific Gas & Electric soared 20.6% after Governor Gavin Newsom urged lawmakers to rethink rules on how California utilities pay for wildfires sparked by their equipment.
Anthem, National Oilwell Varco and UnitedHealth Group were among the worst S&P 500 performers of the session.