Stocks

US stocks end mixed despite bumper big-bank earnings

Reuters April 14 | Updated on April 15, 2021

Dow up 0.16%, Nasdaq down 0.99%

Wall Street indexes closed mixed on Wednesday, with the Nasdaq Composite and S&P 500 falling despite another record intraday high for the latter and big banks' stellar results on the first day of earnings season.

Shares of Goldman Sachs Group Inc and Wells Fargo &Co rose 2.3% and 5.5% respectively on bumper first-quarter profits.

Goldman capitalized on record levels of global deal making activity, and Wells reduced bad loan provisions and got a gripon costs tied to its sales practices scandal.

JPMorgan Chase & Co's shares fell 1.9% despite the largest US bank's earnings jumping almost 400%, as it releasedmore than $5 billion in reserves to cover coronavirus-drivenloan defaults.

Despite bumper trading and investment-banking revenue,lending by both JP Morgan and Wells Fargo fell from a year ago. Investors will be watching this metric carefully in the upcoming earnings of smaller banks, which are more focused on traditional lending and deposit-taking.

The KBW Regional Banking Index has outperformed the KBW Bank Index year to date, although the latter - whichrepresents 24 of the largest US banks - has beaten the indexof smaller institutions over the last month.

The S&P 500 financials sector was one of the firstquarter's best performers, rising 15% even as the FederalReserve pledged to keep interest rates low in the near future.It rose 0.7% on Wednesday.

The S&P 500 energy sector was the largest gaineramong the 11 sub-indexes, advancing 2.9% as it tracked higheroil prices.

The Dow Jones Industrial Average rose 53.62 points,or 0.16%, to 33,730.89; and the S&P 500 lost 16.93points, or 0.41%, at 4,124.66.

The Nasdaq Composite dropped 138.26 points, or0.99%, to 13,857.84, weighed by technology-related stocksincluding Apple Inc, Microsoft Corp and TeslaInc.

Coinbase Global Inc jumped upon its listing on the Nasdaq on Wednesday, at one point hitting $429.54 per share versus a reference price of $250. The cryptocurrency exchangeclosed at $328.28.

Advancing issues outnumbered declining ones on the NYSE by a1.45-to-1 ratio; on Nasdaq, a 1.22-to-1 ratio favored advancers.

The S&P 500 posted 68 new 52-week highs and no new lows; the Nasdaq Composite recorded 96 new highs and 32 new lows.

Published on April 15, 2021

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