Stocks advance on better than expected earnings from JPMorgan, Wells Fargo.
U.S. stocks advanced on Friday after two of America’s largest banks reported better than expected earnings.
All of Wall Street’s major indices finished higher. The Dow Jones Industrial Average (NYSEARCA:DIA) advanced 269.35 points, or 1%, to close at 26,412.40.
The large-cap S&P 500 Index (NYSEARCA:SPY) climbed 0.7% to close at 2,907.45. Ten of 11 primary sectors contributed to the rally, with financials leading the way higher. Industrials and materials also outperformed the market.
The technology-focused Nasdaq Composite Index (NYSEARCA:QQQ) notched gains of 0.5% to close at 7,984.16.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) declined sharply on Friday, as calm returned to Wall Street. VIX, also known as the “fear index,’ fell 7.2% to 12.08 on a scale of 1-100 where 20-25 represents the historic average.
In economic data, the University of Michigan’s consumer sentiment index decreased more than expected in April, according to the preliminary estimate released on Friday. The consumer sentiment index declined to 96.9 from 98.4 previously. Analysts had called for a drop to 98.0.
On the commodities front, oil prices resumed their uptrend in the final session of the week. The U.S. West Texas Intermediate (WTI) benchmark for U.S. crude futures climbed 61 cents, or 1%, to $64.19 a barrel on the New York Mercantile Exchange. Brent crude, the international futures benchmark, rose 84 cents, or 1.2%, to $71.67 a barrel on London’s ICE futures exchange.
The Final Word: Corporate earnings season picks up next week, with a slew of Dow industrials scheduled to report. Q1 2019 is shaping up to be the worst earnings quarter since 2016. It remains to be seen whether a disappointing earnings season undermines the market’s bullish revival since Christmas.