Wall Street rises from the start – Citi rises despite nightmare quarter – E24

Wall Street rises from the start – Citi rises despite nightmare quarter – E24

Major banks filed quarterly reports before the stock market opened on Friday.

Published:

This is what the most important indicators look like immediately after the opening:

  • The Dow Jones index rose 0.1 percent
  • The Nasdaq rose 0.5 percent
  • The S&P 500 rose 0.5%

Banks declined in pre-trade

Several US banks filed quarterly reports and annual results on Friday. Many of them have already fallen pre-trade.

  • JP Morgan: It generated net income of $9.3 billion in the fourth quarter.
  • American bank: Net income: $3.14 billion.
  • Wells Fargo: Net income: $3.4 billion.

Citigroup reported its worst quarterly results in 15 years. At the same time, the bank is announcing the reduction of 20,000 jobs in the “medium term.” Financial Times.

Citi, which is in the middle of a major reorganization, lost $1.8 billion after taxes in the fourth quarter due to restructuring-related costs, significant losses related to its business outside the United States, and expenses incurred by authorities in connection with last year's bankruptcy. Banking crisis.

Shortly after the stock exchange opened, there was a somewhat mixed reaction for banks:

  • Citigroup rises 2.5 percent
  • JP Morgan rises 2.8 percent
  • Bank of America declines 2.6 percent
  • Wells Fargo is backing down 1.4 percent
Big bank JP Morgan's performance during the quarter was poor, and its profits fell by 15 percent.

Stronger price growth than expected

Wall Street was very cautious on Thursday after inflation suddenly rose.

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Before the opening was announced US Bureau of Economic Analysis New figures for price inflation

  • The US Consumer Price Index (CPI) reached 3.4 percent in December, compared to the same month last year. In November, the CPI inflation rate was 3.1 percent.
  • In advance, economists were expecting a slight rise to 3.2 percent, according to a Bloomberg survey.
  • Core inflation ignores energy and food prices. It closed at 3.9 percent in December. In advance, a decline of 3.8 percent was expected, from 4 percent in November.

This was slightly more than expected, but did little to change the gradual downward trend in inflation. What concerns the Fed is that the last mile to bring inflation back to target looks more difficult, Commerzbank wrote in an update.

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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