Stocks posted solid gains on Friday following earnings reports from some of the largest U.S. banks, despite concerns over hotter-than-expected wholesale price inflation. The Dow Jones Industrial Average traded above 40,000, setting the stage for a potential record close.
Banking Sector Highlights:
- JPMorgan Chase reported second-quarter earnings of $6.12 per share, surpassing analysts’ estimates of $5.88. Despite the beat, the stock slipped 0.9% as net interest income of $22.75 billion missed forecasts.
- Wells Fargo saw its shares slide 6.4% after reporting second-quarter net interest income of $11.9 billion, falling short of Wall Street’s expectations of $12.1 billion and marking a decline from $13.2 billion reported a year earlier.
- Citigroup posted second-quarter earnings of $1.52 per share, exceeding Wall Street’s expectations of $1.39. However, the stock dropped 1.9% as net interest income of $13.49 billion in the quarter fell 3% year-over-year.
- Bank of New York Mellon (BNY) saw its shares rise 5.4% after reporting second-quarter earnings, revenue, and net interest income that beat Wall Street expectations.
Tech Sector Movements:
- Tesla rose 4.1% to $250.84, rebounding despite a recent downgrade by UBS analyst Joseph Spak from Neutral to Sell, albeit with an increased target price of $197. Tesla’s stock had experienced an 8.4% decline the previous day following reports of a delayed robotaxi event.
- Nvidia, which had fallen 5.6% the previous day amid broader tech selloffs, saw a 3.2% increase in its stock price on Friday.
- Meta Platforms (formerly Facebook) declined 1.9%, continuing its downward trend from the previous day’s 4.1% drop.
Other Market Movers:
- AT&T declined 0.4% after disclosing a security breach where customer data was illegally downloaded from its third-party cloud platform.
- Fastenal rose 2.7% after reporting second-quarter sales of $1.91 billion, slightly above the $1.88 billion reported a year earlier, in line with estimates. The company noted challenges in the underlying market activity but managed to maintain growth.
- Carvana gained 7.3% to $139.43 after BTIG initiated coverage with a Buy rating and a price target of $155, citing optimism in the online car-selling market.
- Array Technologies, which makes ground-mounting systems for solar energy projects, rose 8% to $11.69 following an upgrade to Buy from Neutral by Citi analysts. The solar sector benefited from favorable consumer inflation data, although demand remains subdued due to elevated interest rates.
Overall, the market demonstrated resilience despite inflation concerns, driven by strong earnings from banks and selective rebounds in the technology and renewable energy sectors. If you have any more questions or need further details, feel free to ask!