The Dow and S&P 500 consolidate from record highs Friday, as financials cut some gains despite better-than-expected earnings from Wall Street banks.
The Dow Jones Industrial rose 0.30%, or 102 points, and hit a record high 34,256.75 . The S&P 500 then rose 0.90%, to a record high of 4,186.10, and the Nasdaq Composite was 0.1% in discount.
Morgan Stanley , Bank of New York Mellon and PNC Financial Services reported first-quarter results that beat estimates on the top and bottom lines, but it was the latter that got the acclaim rising more than 2%.
U.S. Bancorp led the charge, increasing 3% as its better-than-expected quarterly earnings released Thursday.
Statement from RBC: US Bancorp has started to “experience a rebound in its fee based businesses along with the improved credit picture, which should reassure investors that the company will navigate this downturn better than nearly all of its peers and should maintain its premium valuation to the group”.
Janney said: “The bottom line here is- if the TNX (10-year Treasury yields) continues to push lower over the short-run, these themes / strategies [small-caps, value, and financials] will also continue to underperform (over the short-run)”.
A 10% increase in the field of materials was lifted in PPG Industries in the wake of its first-quarter results and upbeat second-quarter guidance released Thursday.
On the other hand, cyclical sentiments were also helped by further signs of an uptrend consumer following Thursday’s blowout retail sales data.
Dow and S&P500 Effects on Oil and Tech
Meanwhile, the energy sector slipped as oil lost its gains from the global recovery after China reported record GDP growth in Q1.
Marathon Oil , EOG Resources and Nov were among the biggest losers.
Big tech, unmoved in its gains with the Fab trading mixed even as U.S. bond yields amassed from session highs.
In other news, Splunk plummets over 7% after KeyBanc bust the stock to sector from overweight following the resignation of chief technology officer Tim Tully.
KeyBanc said: the resignation comes at a “tough time” for the company as it transitions to a subscription model this year.
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