Wall St. treads water after mixed bank earnings


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Wall St. treads water after mixed bank earnings

On Tuesday, the 16th of July 2019, all three key indexes of Wall St. had shown little response following mixed earnings of major US lenders, while share prices of major banks had been swaying between greens and reds during late-morning US trading hours.

Earlier on Tuesday (July 16th), JP Morgan Chase & Co., the largest US lender by asset, had posted quarterly earnings that had beaten analysts’ estimate, however a slip in interest margin had spurred concerns among the investors that a likely rate-cut later this month could hurt profit margins of large US lenders.

So far, JPMorgan Chase & Co. shares had been highly volatile and trading marginally higher during preparation of the report after dropping as much as 1 percent during early US morning trading hours. Besides, Goldman Sachs added 2.4 percent and Wells Fargo rose 0.5 percent following reveal of quarterly earnings, which reported profits that had also beaten analysts’ estimate.

Adding that the financial markets in United States would unlikely to continue to rally around their all-time-highs, a chief market economist at Spartan Capital Securities in New York, Peter Cardillo said, “We’re going to need extraordinarily good news in order to keep the market rallying at a fast pace.

It will be really difficult to do that until we get into the full earnings season”. Quoting statistics, during late-morning US trading hours, Dow had added 0.05 percent to 27,372.81, while S&P shed 0.11 percent to 3,011.04 and Nasdaq was nudged lower by 0.12 percent to 8,248.51.