Home Topics Business Wall Street ends up mixed in spite of the huge revenues of...

Wall Street ends up mixed in spite of the huge revenues of the big banks

© Reuters. FILE 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) – The decline retreated after hitting a record high in the fourth of five sessions, and the Dow Industrials surged on Wednesday as Wall Street banks kicked off earnings season with first-quarter numbers, hoping for one a strong recovery in companies.

Goldman Sachs Group Inc (NYSE 🙂 rose 3.4% after seeing a massive jump in profits that benefited from record levels of dealmaking activity around the world.

JPMorgan Chase & Co (NYSE 🙂 shares fell 1.4%, although the largest U.S. bank’s profits rose nearly 400% as reserves of more than $ 5 billion to cover coronavirus-related loan losses were released.

Wells Fargo (NYSE 🙂 & Co rose 5.5% after the bank rebounded to nearly $ 5 billion in profit ahead of Wall Street estimates as it slashed provisions for bad loans and over those with the scandal Sales practices related costs got under control.

“Bank profits were strong, but the market expected strong,” said Christopher Grisanti, chief equity strategist at MAI Capital Management.

“So the question is how bank stocks will continue to rise from here. It’s not clear. They had a nice ride. I think there will be other places in the future where it’s easier to make money.”

Despite the bumper trading and investment banking revenue, JP Morgan and Wells Fargo loans declined year over year. Investors will closely monitor this metric in the upcoming earnings of smaller banks that are more focused on traditional lending and deposits.

“Financials have been doing well for a while, so we’re happy with them. However, are we going to get to a point where returns in this sector are going down? I don’t know,” said Drew Horter, president and chief investment officer of Tactical Fund Advisors in Cincinnati.

The S&P 500 financial sector was one of the best performers in the first quarter, up 15% despite the Federal Reserve pledging to keep interest rates low in the near future. It rose another 0.8% on Wednesday.

The S&P 500 energy sector was the biggest winner among the 11 sub-indices, up 3.1% as it saw higher oil prices. [O/R]

At 2:41 p.m. ET, the value rose 121.26 points, or 0.36%, to 33,798.53; and the S&P 500 lost 7.62 points, or 0.18%, to 4,133.97. The decline fell 84.01 points, or 0.6%, to 13,912.09, with soaring tech stocks like Apple Inc (NASDAQ :), Microsoft Corp. (NASDAQ 🙂 and Tesla (NASDAQ 🙂 Inc weigh on the index.

Coinbase Global Inc listed on the Nasdaq on Wednesday. The shares opened at a price of $ 381 versus a reference price of $ 250.

Cryptocurrency and blockchain-related companies including Riot Blockchain (NASDAQ 🙂 and Marathon Digital Holdings fell after skyrocketing ahead of Coinbase’s debut and Bitcoin hit a record high of over $ 63,000 on Tuesday.

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