Bank results lift stocks; Dow up for seventh straight session

economictimes.indiatimes.com:

Dow on track for its longest streak of daily gains in more than two years. Morgan Stanley shares jumped 6.45%, their biggest one-day percentage climb since Nov. 9, 2020 after topping expectations as growth in the bank's wealth management business offset lower trading revenue.

Bank of America gained 4.42% after its profit beat expectations by earning more from customers' loan payments, while investment banking and trading fared better than expected. Shares of other banks also rose on Tuesday, with Bank of New York Mellon up 4.11%, and PNC Financial up 2.51%, after they reported quarterly results. «They are surprising.

This morning all the banks reported, all beat earnings expectations and all except PNC beat revenue expectations,» said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. «I always hate to extrapolate the big bank earnings, which are always the first ones, to the rest of the market. We have a lot more coming here but earnings estimates have been brought down and banks are able to surprise.» The Dow Jones Industrial Average rose 366.58 points, or 1.06%, to 34,951.93, the S&P 500 gained 32.19 points, or 0.71%, at 4,554.98 and the Nasdaq Composite added 108.69 points, or 0.76%, at 14,353.64.

The Dow registered its seventh-straight session of gains, its longest streak since March 2021, and closed at its highest level since April 2022. Some of the largest U.S. banks such as JP Morgan last week cited a profit boost from higher rates and indicated the economy remained resilient.