Reflection of Tech Optimism: The Nasdaq ended the trading day lower

Reflection of Tech Optimism: The Nasdaq ended the trading day lower

Results season kicks off this week in the USA. Several large banks came under fire before the start of the last trading day of the week.

JP Morgan, Citigroup and Wells Fargo all presented their results for the second quarter — and then investors got a better answer about how the banking crisis is affecting the industry after rare financial excitement emerged in March.

Storbank rose

  • JPMorgan Chase & Co reported adjusted earnings per share of $4.37 in the second quarter of 2023 on revenue of $41.3 million. Net revenue closed at $14.5 billion, according to the company’s quarterly report on Friday. According to the Refinitiv consensus, earnings of $3.99 per share and revenue of $38.96 billion were expected upfront. The share had risen by more than three percent in the pre-trading stage, so shares were expected to point up for the share when the stock market opened. The stock ended the trading session up 0.6 percent.
  • The bank said on Friday that Citigroup reported adjusted earnings per share of $1.37 in the second quarter of 2023 on a turnover of $19.4 billion. According to the Refinitiv consensus, earnings per share were expected to be $1.30 on revenue of $19.27 billion. The share decreased four percent.
  • Wells Fargo had turnover for the period of $20.53 billion versus an expected $20.07 billion. The bank said on Friday that the company posted earnings per share of $1.25 in the second quarter of 2023. It previously expected earnings per share of $1.15, according to estimates obtained by Refinitiv. The share fell 0.2 percent.
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Mood shift

Friday started with the same optimism among Wall Street investors earlier this week, and at the open there was an increase in the three major indices. But in the middle of the trading day, the mood of some of them changed.

This is how it looked at closing at 10pm NST:

  • The Dow Jones Industrial Average, which consists of 30 handpicked stocks thought to be important, rose 0.3 percent.
  • The Nasdaq Composite Index, which was dominated by technology stocks, fell 0.1 percent
  • The Standard & Poor’s 500 Collective Index, which consists of 500 of the largest listed companies, fell 0.1 percent.

The previous four days finished higher. Both the Nasdaq and the Standard & Poor’s 500 reached annual record levels during the week, and the indices rose on Wednesday to a level they have not seen since April 2022. On the other hand, the Dow Jones index leaves its best levels since March of this year.

Some of the investor optimism comes from the positive inflation numbers that have been presented to them. On Wednesday, it appeared that price growth in the US economy in June fell significantly from the previous month.

The result was headline inflation of 3 percent year-on-year, yet core inflation was still high at 4.8 percent. On Thursday, the producer price index for June was published – and it turned out that it rose less than expected.

The producer price index, which measures what wholesalers pay for goods, rose 0.1 percent in June on an annual basis. The core producer price index, which excludes food and energy prices, rose 0.1 percent.(conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We’d like you to share our statuses using links that lead directly to our pages. Reproduction or other use of all or part of the Content may be made only with written permission or as permitted by law. For more terms see here.

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Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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