The markets moved higher today, pushing the Nasdaq 100 to new records and the S&P 500 to gain 1.5% on the week to reach its highest prices since early March. The Dow 30 closed the day up 94, the S&P 500 added 3, and the Nasdaq 100 closed higher on the day by 2.
Earnings from some large banks initially weighed on the markets but investors moved on quickly to buy the early dip. JP Morgan (JPM ) and Wells Fargo (WFC ) were the major banking stocks in focus today.
Sector News
Industrials were the strongest area of the markets today as they officially erased the "tariff drop" from Wednesday. Though it was choppy, the industrials added about 2.5% on the week thanks to a continued recovery from Boeing (BA ), and Fastenal's (FAST ) strong move after reporting earnings.
The Telecommunications sector was the worst performer on the day thanks to an announcement that the Department of Justice would appeal the AT&T (T ) and Time Warner (TWX ) court decision. This pushed shares of AT&T lower on the day by 2%, holding telecom stocks back.
Stock News:
Wells Fargo (WFC ) shares sold off this morning on their earnings announcement, which showed that the bank earned less from fees than it did a year ago and that their loan book shrank. The bank attributed this to their profit numbers which came in lower than expected. Though the bank said the loan book shrank because they were avoiding riskier loans, analysts were quick to point out that it could be the damage they did to their reputation with all the scandals.
JP Morgan (JPM ) also announced earnings today that beat Wall Street's expectations. The company also said that loan demand increased thanks to a strengthening economy. Cuts in corporate tax rates and higher interest rates were a good combination for the bank last quarter. Revenue was higher by 6.5%.
Citigroup (C ) shares were lower by 2.25% today after the company announced revenue for the quarter that was lower than expected. Overall profit was higher and EPS came in better than expected but this was due to the share buybacks and not organic growth.
