by Chuck Mikolajczak

NEW YORK (Reuters) – The New York Stock Exchange ended higher on Tuesday, driven in particular by a burst of solid results from major American banks, the Dow Jones marking an increase for a seventh consecutive session – a series not seen since March 2021 – and settling at a closing record since April 2022.

The Dow Jones Industrial Average gained 1.06%, or 366.58 points, to 34,951.93 points.

The broader S&P-500 gained 32.19 points, or 0.71%, to 4,554.98 points.

The Nasdaq Composite advanced for its part by 108.69 points (0.76%) to 14,353.64 points.

Several major U.S. banks unofficially kicked off the earnings season last week, including JPMorgan Chase and Wells Fargo, which reported higher quarterly revenue, thanks in part to the Reserve’s monetary tightening cycle. (Fed), highlighting the resilience of the economy.

During the day, Morgan Stanley published results above expectations, the growth of its management activity having compensated for the decline in trading.

Bank of America also beat the consensus, helped by higher loan repayments, while its trading activities were stronger than expected.

Both banks ended the session in the green, with Morgan Stanley posting its largest daily gain (6.45%) since last November, while Bank of America gained 4.42%. Several regional banks also made progress.

“They are surprising. This morning the banks that communicated have all exceeded expectations and all, except PNC, have beaten earnings forecasts,” commented Tim Ghriskey, strategist at Ingalls & Snyder, in New York.

“I don’t like to extrapolate on the results of the big banks (…) There is still a lot to come (…)”, he added.

The S&P-500 banking index rose 1.90% to reach its highest level since March 8, ie before a small crisis in the sector caused by the bankruptcy of two regional banks.

More broadly, major Wall Street indices have recently posted gains, with the S&P-500 and Nasdaq set at 15-month highs, as indicators pointed to the resilience of the US economy, with inflation less strong and a strong labor market.

Data released during the day showed that retail sales in the United States rose less than expected in June, although consumers maintained their spending levels. Industrial production also fell unexpectedly last month but rebounded in the quarter, driven by the acceleration in the number of vehicles produced.

( Jean Terzian)

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