You are here: Home » Reuters » News
Business Standard

S&P 500 at five-month high, but banks weigh after results

Reuters  |  NEW YORK 

By Caroline Valetkevitch

NEW YORK (Reuters) - U.S. stocks rose slightly on Friday, putting the at its highest closing level in more than five months, as gains in industrials and other areas offset a drop in financials after results from three of the big banks mostly disappointed.

The industrial sector <.SPLRCI> gained 0.6 percent, with , and all rose in the absence of any trade rhetoric overnight.

Investors were optimistic ahead of what is expected to be a strong second-quarter U.S. earnings season, although reports on Friday from three of the biggest Wall Street banks failed to enthuse.

"In spite of the disappointment from the financials, which have been and continue to be a laggard ... there's still relative strength," said Michael James, at in

Earnings "expectations are certainly elevated from where they were a month ago, but if companies do deliver in general, the market as a whole will continue to move higher," he said.

slid 2.2 percent, the most among financials, after its revenue fell short of estimates due to lower debt underwriting. dipped 1.2 percent after its profit fell more than expected as lending slowed and costs rose.

shares were down 0.5 percent although the bank's profit beat estimates. The financial index <.SPSY> fell 0.5 percent.

The <.VIX> closed at its lowest level since June 15.

The <.DJI> rose 94.52 points, or 0.38 percent, to 25,019.41, the <.SPX> gained 3.02 points, or 0.11 percent, to 2,801.31 and the Composite <.IXIC> added 2.06 points, or 0.03 percent, to 7,825.98.

The posted its highest closing level since Feb. 1. The index is now just 2.5 percent from its Jan. 26 record closing high and up 4.8 percent for the year so far.

Investors are expected to keep a close eye on trade talk between the and said Thursday the and could reopen trade talks if was willing to make significant changes.

sank 4.3 percent after Deutsche warned the company could fall short of subscriber growth numbers when it reports results on Monday.

dropped 1.4 percent after a jury ordered it to pay a record $4.69 billion to 22 women who alleged its talc-based products contain asbestos and caused them to develop ovarian cancer.

AT&T Inc's shares fell 1.7 percent on the U.S. Justice Department's plan to appeal a federal judge's approval of the company's already closed $85.4 billion acquisition of

Advancing issues outnumbered declining ones on the NYSE by a 1.01-to-1 ratio; on Nasdaq, a 1.22-to-1 ratio favoured decliners.

The S&P 500 posted 38 new 52-week highs and 2 new lows; the Composite recorded 93 new highs and 40 new lows.

Trading volume was among the lowest of the year, with about 5.3 billion shares changing hands on U.S. exchanges. That compares with the 6.6 billion daily average for the past 20 trading days, according to data.

(Additional reporting by in Bengaluru; Editing by Shounak Dasgupta, and Susan Thomas)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sat, July 14 2018. 02:44 IST