PARIS (Reuters) – The New York Stock Exchange opened cautiously higher on Friday after the results of the American financial giants while bond yields fell sharply the day after a sharp increase linked to an acceleration in American inflation.
In early trading, the Dow Jones index gained 220.47 points, or 0.66%, to 33,851.61 points and the broader Standard & Poor’s 500 rose 0.43% to 4,368.56 points.
The Nasdaq Composite gained 0.12%, or 16.64 points, to 13,590.86 points.
Among the financial publications of the day, BlackRock reported a quarterly profit higher than expectations, however marked by a sharp drop in net inflows, which caused the stock to fall by 1.47%.
JPMorgan Chase reported an increase in third-quarter profit thanks to an increase in net interest income and the acquisition of regional bank First Republic Bank. The title of the leading American bank advances 3.73%.
Wells Fargo, for its part, gained 3.57% after a quarterly profit also supported by the rise in interest rates, while Citigroup gained 2.74% after a generally stable quarterly profit.
Options traders, however, are bracing for larger-than-usual swings in the share prices of some U.S. banks after these publications, Trade Alert data shows.
“Implied volatilities are relatively high given the earnings history of these companies,” says Steve Sosnick, chief strategist at Interactive Brokers.
“The market will likely breathe a sigh of relief as Citigroup’s strong numbers also align with strong results from JPMorgan and Wells Fargo, and go some way to suggesting that the worst of the banking crisis is now over,” notes for his part Stuart Cole, chief macroeconomist at Equiti Capital.
“But next year could prove more difficult, when the Fed is expected to start cutting rates again and fears remain about whether the United States will avoid a recession,” he added.
Excluding finance, Unitedhealth increased by 3.16%, the health group having published a profit in the third quarter higher than analysts’ expectations, while in the energy compartment Exxon Mobil (+1.79%) and Chevron (+ 1.23%) are sought in the wake of a jump in oil prices after new American sanctions against Russian crude exports.
On the bond market, the yield on ten-year US Treasury bonds fell by nine basis points, to 4.61%, the first drop in five sessions after an increase driven by monthly consumer price figures in the United States. published Thursday.
Several Federal Reserve (Fed) officials, including Patrick Harker, are also due to speak later today as traders continue to bet on a status on Fed rates for the November and December meetings .
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(Written by Claude Chendjou, edited by Blandine Hénault)
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