AP – United States (US) stocks rose to records on Friday as big banks rallied following a run of reassuring profit reports.
The S&P 500 climbed 0.6 per cent to top its all-time high set earlier in the week and close out its fifth straight winning week, while the Dow Jones Industrial Average jumped 409 points, or one per cent, to set its own record. The Nasdaq composite lagged the market with a gain of 0.3 per cent after a slide for Tesla kept it in check.
Wells Fargo rose 5.6 per cent after reporting stronger profit for the latest quarter than analysts expected. It benefited from better results from its venture-capital investments and higher fees for investment-banking services, among other things. Banks and other financial giants traditionally kick off each earnings reporting season, and JPMorgan Chase climbed 4.4 per cent after reporting a milder drop in profit than analysts feared. It was the strongest single force pushing upward on the S&P 500.
Chief Executive Officer (CEO) Jamie Dimon said the nation’s largest bank is also still buying back shares of its stock to send cash to investors, but the pace is modest “given that market levels are at least slightly inflated. BlackRock, meanwhile, rose 3.6 per cent after likewise delivering better profit for the latest quarter than analysts expected. The investment giant ended September managing a record USD11.5 trillion in total assets for its customers.
The gains for banks helped make up for the drag of Tesla, which tumbled 8.8 per cent and was the heaviest weight on the market.
The electric-vehicle maker unveiled its long-awaited robotaxi on Thursday night, but critics highlighted a lack of details about its planned rollout.
Following the unveiling of the “Cybercab”, potential rival Uber Technologies jumped 10.8 per cent and was one of the strongest forces lifting the S&P 500.
