Wall Street Rebounds Amid Bank Earnings Optimism

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Wall Street Rebounds amid Bank Earnings Optimism

On Tuesday, US stocks climbed rebounding from the worst three-day decline of the S&P 500 since Nov 2011, as bullish investors hoped that solid earnings season will ease concerns on global growth.

In five of the last six sessions, the benchmark S&P has dropped as investors were concerned about the impact the weakness of the global economy will have on US earnings and Ebola’s potential spread.

Reuters quoted Wunderlich Securities chief market strategist, Art Hogan as having said, “In an environment that is oversold to begin with, it doesn’t take much to effectuate a shift in market.”

He added, “It’s hard to know how long that hold, but at some point in time the market shifts its focus from the global macro to the micro and that is where we are today- we are looking at this on a company-by-company basis.”

As reported by Fox Business, Citigroup rose 3.2% to $51.48 was one of the top boosts to the S&P index after the bank posted quarterly results that were larger than expected and said that 11 of its markets would pull out of consumer banking.

JP Morgan Chase shares dropped 1.1% to $57.54 after the largest bank in the US posted Q3 earnings. The fourth largest bank in the US, Wells Fargo, lost 1.6% to $49.39 after posting its results.

Johnson & Johnson shares dropped 1.3% $97.82 after the healthcare company posted quarterly earnings that were better than expected due to strong sales for the new drug for hepatitis C.

The S&P financial index gained 0.7%

LEK Securities director of sales and trading, Frank Davis said, “Hopefully earnings will take people’s minds off erratic and high volatility. As the market moves down, we fully expect that to happen.”

The Dow Jones Industrial Average gained 0.845 or 137.56 points to 16,458.63 while the Nasdaq Composite gained 1.53% or 64.65 points to 4,278.30. The S&P 500 climbed 1.27% to 23.76 points to 1,898.5.

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To contact the reporter of the story: Jonathan Millet at john@forexminute.com