Well it’s about time. The Dow Jones Industrial Average
Here’s how the three major U.S. indexes reacted to the news today.
|Dow Jones Industrial Average||203.82 [1.62%]||12,777.09|
|S&P 500 ||22.02 [1.65%]||1,356.78|
Why did markets shoot up despite two seemingly bearish economic reports? In a word: earnings. JPMorgan soared 6% on the day after reporting earnings that beat expectations. The so-called London whale’s losses were booked at $4.4 billion, and will likely get significantly worse before it’s all said and done. But JPMorgan made up for it with gains from selling securities, some accounting quirks, and reducing loan loss reserves to beat expectations. Fellow bank Wells Fargo continues to dominate the mortgage market, and also reported a solid quarter, with its stock jumping 3.2% on the day. The great day for these two banks helped Bank of America surge 4.6%, as well. Check out the video below for more on what drove the Dow, and what to watch for from next week’s earnings.
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Brendan Byrnes owns shares of Wells Fargo. The Motley Fool owns shares of JP Morgan Chase and Bank of America. Motley Fool newsletter services have recommended buying shares of Cummins and Wells Fargo. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.