Stock Market Today: Dow ekes out gain for weekly win amid strong bank earnings
Investing.com – The Dow eked out a gain to end the week higher Friday, as Wall Street banks kicked off the earnings season with better-than-expected quarterly results, though investors had to contend with a bout of volatility amid rising geopolitical tensions.
The Dow Jones Industrial Average rose 0.1%, 39 points, and the Nasdaq slumped 1.2%, and the S&P 500 fell 0.5%. The CBOE Volatility Index, or so-called fear indicated jumped 15%.
Major Wall Street banks including JPMorgan Chase & Co (NYSE:JPM) and Wells Fargo & Company (NYSE:WFC) rallied after reporting better-than-expected quarterly results.
JPMorgan rose more than 2% after reporting a 35% jump in earnings for third quarter, underpinned by a surge in rates that bolstered its retail banking unit's profits.
Citigroup Inc (NYSE:C), however, gave up gains to close lower.
Earnings are expected to dominate moves in the broader market, overshadowing geopolitical tensions and the recent move in rates.
«Focus on the earnings picture – it is what drives stocks, not geopolitics, not rates, not talking heads – earnings and if earnings are fine then stocks can rise without multiple expansion. As we have discussed, the ROW offers room for both EPS growth & multiple expansion,» Jim Bianco of Bianco Research president said in a note.
Energy stocks rose more than 2% following a surge in oil prices after the U.S. imposed sanctions on two tankers carrying Russia oil for breaching the G7’s $60 a barrel Russian oil price cap at a time when geopolitical tensions are rising as Israel prepares for a ground assault in Gaza.
APA Corporation (NASDAQ:APA), Marathon Oil Corporation (NYSE:MRO), and EOG Resources Inc (NYSE:EOG) were among the biggest gainers on the day.
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