© Reuters. MANAGEMENT PHOTO: A street sign, Wall Street, is seen outside the New York Stock Exchange (NYSE) in New York City, New York.
By Shivani Kumaresan, Shreyashi Sanyal and David French
(Reuters) – Wall Street indices closed mixed on Wednesday, with the decline despite another intraday record for the latter and the major banks’ star results on the first day of the earnings season.
Shares of Goldman Sachs Group Inc (NYSE 🙂 en Wells Fargo (NYSE 🙂 & Co rose 2.3% and 5.5% respectively due to the bumper first quarter.
Goldman profited from record levels of global transactions, and Wells reduced bad loan facilities and got hold of the costs associated with the scandal for sales practices.
JPMorgan Chase & Co (NYSE :)’s shares fell 1.9%, despite the largest US bank’s earnings rising by almost 400% as it released more than $ 5 billion in reserves due to coronavirus-driven defaults word, to cover.
“Bank earnings were strong, but the market expected it to be strong,” said Christopher Grisanti, chief stock strategist at MAI Capital Management.
“The question then becomes how the bank shares are rising more from here. It is not clear. They had a nice ride. I think there will be other places in the future to make money easier.”
Despite bumper trading and income from investment banking services, JP Morgan and Wells Fargo’s loans have fallen from a year ago. Investors will keep a close eye on this measure in the upcoming earnings of smaller banks, which are more focused on traditional lending and deposit-taking.
The KBW Regional Banking Index has outperformed the KBW Bank Index to date, although the latter – which represents 24 of the largest US banks – has beaten the index of smaller institutions in the past month.
Graph: KBW Bank Index Against Local Banks https://fingfx.thomsonreuters.com/gfx/mkt/xklvyydjgvg/Pasted%20image%201618428425312.png
“Finance has been doing well for a while, so we are happy with it now, but will we reach a point of declining returns in the sector? I do not know,” said Drew Horter, president and chief investment officer of Tactical Fund. Advisors in Cincinnati.
The financial sector S&P 500 was one of the best performers in the first quarter, rising 15%, even though the Federal Reserve has promised to keep interest rates low in the near future. It rose 0.7% on Wednesday.
The S&P 500 energy sector was the largest gain among the 11 sub-indices and rose 2.9% as a result of higher oil prices. [O/R]
The increase was 53.62 points, or 0.16%, to 33,730.89; and the S&P 500 lost 16.93 points, or 0.41%, at 4,124.66.
The Nasdaq Composite dropped 138.26 points, or 0.99%, to 13,857.84, weighted by technology-related stocks, including Apple Inc. (NASDAQ :), Microsoft Corp. (NASDAQ 🙂 and Tesla (NASDAQ 🙂 Inc.
Coinbase Global Inc. jumped from its listing on the Nasdaq on Wednesday, reaching $ 429.54 a share at one point, compared to a reference price of $ 250. The cryptocurrency exchange closed at $ 328.28.
Cryptocurrency and blockchain-related businesses, including Riot Blockchain (NASDAQ 🙂 and Marathon Digital Holdings, fell 15.4% and 15.8% respectively after rising before Coinbase’s debut, and because bitcoin hit a record high of more on Tuesday if $ 63,000.
The US stock market was 9.50 billion shares compared to the average of 11.27 billion for the full session over the past 20 trading days.
Progressive issues became less than the decline on the NYSE by a ratio of 1.45 to 1; on Nasdaq were a 1.22-to-1 preferred beneficiaries.
The S&P 500 reached 68 new 52-week highs and no new lows; the Nasdaq Composite recorded 96 new highs and 32 new lows.