Stocks rose higher on Friday as market participants digested earnings reports from key financial heavyweights. The Dow Jones Industrial Average added over 100 points, while the S&P 500 Index and Nasdaq Composite gained 0.4% and 0.7%, respectively.
Here's how the market settled to close out the week:
S&P 500 Index (SPY ): +0.40% or +15.92 points to 3,999.09
Dow Jones Industrial Average (DIA ): +0.33% or +112.64 points to 34,302.61
Nasdaq Composite Index (QQQ ): +0.71% or +78.05 points to 11,079.16
Friday's moves helped cement a winning week on Wall Street, with the S&P 500 and Nasdaq both posting their second consecutive positive week and their best weekly performance since November. The Nasdaq outperformed for the week, adding 4.82%, while the S&P 500 rose 2.67%, and the Dow gained 2%.
Driving market moves, multiple big banks and other financial giants on Wall Street reported quarterly earnings Friday morning.
JPMorgan Chase (JPM ) posted better-than-expected earnings, with revenue rising 7.2% annually at $11.1 billion in the fourth quarter. CEO Jamie Dimon commenting that "the U.S. economy currently remains strong with consumers still spending excess cash and businesses healthy. However, we still do not know the ultimate effect of the headwinds," including geopolitical tensions, rising interest rates and persistently high inflation.
Bank of America (BAC ) also posted better-than-expected revenue at $24.5 billion, which was 11% higher than last year's fourth quarter. On a call with investors, CEO Brian Moynihan said the bank's baseline scenario for the economy this year "contemplates a mild recession."
Wells Fargo (WFC ) also benefited from higher interest rates like its peers for its earnings, but its revenue came in below expectations at $19.7 billion compared to $20.9 billion a year ago. "As we look forward, we are carefully watching the impact of higher rates on our customers and expect to see deposit balances and credit quality continue to return toward pre-pandemic levels," CEO Charlie Scharf said in a statement.
Citigroup (C ) reported fourth quarter revenue that topped estimates at $18.01 million, but its net income came in below expectations at $2.5 billion versus $3.2 billion a year ago. Still, CEO Jane Fraser said the company's Markets segment had its "best fourth quarter in recent memory".
BlackRock (BLK ) also posted a fourth-quarter profit decline of 18% due to the global market rout impacting the asset manager's fee income. BlackRock noted in a statement that its 8% year-to-year decline in full-year revenue was also due to "significantly lower markets and dollar appreciation on average AUM and lower performance fees."
Beyond financial stocks, Delta Air Lines (DAL ) reported fourth-quarter profit and revenue that topped expectations. "As we move into 2023, the industry backdrop for air travel remains favorable and Delta is well positioned to deliver significant earnings and free cash flow growth," CEO Ed Bastian said in a statement.
Virgin Galactic (SPCE ) rose nearly 13% on Friday after the space tourism company announced it was on track for a commercial launch in the second quarter of 2023.
Elsewhere, the University of Michigan reported its consumer sentiment index rose for a second straight month to 64.6 from 59.7 in December in January's preliminary reading. Still, the index remains at historic lows.
"Uncertainty over both inflation expectations measures remains high, and changes in global factors in the months ahead may generate a reversal in recent improvements," Joanne Hsu, director of the Surveys of Consumers, said in a statement.