Major US stock indices rose, but only slightly, as investors were cautious at the beginning of the corporate reporting season.
Citigroup Inc. (C) published quarterly results that exceeded expectations today before the market opened, giving an unofficial start to the corporate reporting season for the second quarter. The company reported quarterly earnings of $ 1.95 per share, which was above the average forecast ($ 1.80). The bank’s revenue also exceeded expectations. However, analysts say, the main reason for the strong reporting is the income received from the initial public offering (IPO) of the Tradeweb bond trading platform.
Other major US financial institutions will report later this week: JPMorgan Chase & Co. (JPM), Goldman Sachs Group Inc. (GS) and Wells Fargo & Co. (WFC) will report tomorrow, Bank of America Corp. (BAC) - on Wednesday, Morgan Stanley (MS) - on Thursday.
In addition to banks, this week their quarterly results will also be announced by such companies as Johnson & Johnson (JNJ), IBM (IBM), Netflix (NFLX), UnitedHealth (UNH), Microsoft (MSFT), American Express (AXP) and others.
Market participants expect reports and forecasts of companies to assess how deeply the impact of the protracted trade dispute between the United States and China on corporate profits. According to Refinitiv IBES, analysts predict that the profits of the S & P 500 companies will show a 0.4% decline in y / y in the second quarter, which will be the first quarterly decline in three years.
Most of the components of DOW recorded an increase (19 of 30). The growth leader was Dow Inc. (DOW; + 2.21%). JPMorgan Chase & Co. shares turned out to be an outsider. (JPM; -1.44%).
Most sectors of the S & P finished trading in positive territory. The sector of conglomerates grew the most (+ 0.5%). The largest decline was shown by the base materials sector (-0.5%).
At the time of closing:
Dow 27,358.82 +26.79 +0.10%
S & P 500 3,014.28 +0.51 +0.02%
Nasdaq 100 8,258.18 +14.04 +0.17%
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