Skip to content

XTB TRADEBEAT

New highs for US stocks as Banks kick off earnings season

Summary:

  • US500 recovers from post-data blip to hit new record highs
  • JP Morgan and Wells Fargo report latest earnings
  • Facebook slides on announcement to changes to its news feed

The release earlier this afternoon of the December retail sales and CPI figures caused a quick drop lower in stocks with the US500 dropping around 7 points. The market has subsequently recovered however and made a fresh all-time high in the past hour not far from the 2780 handle.   

link do file download link

 The US500 has recovered after selling off following the latest data from the US to trade at a  new all-time high. Source: xStation

Individual shares within the US500 will be more closely scutinised than usual in the coming sessions as the Q4 earnings season gets underway. The first major firms to report are JP Morgan and Wells Fargo with both Banks beating the street in earnings but a miss on revenue for the latter has weighed on the stock price.  

JP Morgan posted fourth-quarter profit of $1.76 per share compared to an average estimate of $1.69.. Net revenue also rose, increasing by 4.6% to $25.45B and topping forecasts for a figure around $25.15. The share price has risen by around 1.5% on the news and moved up to a new all-time high above 112.

link do file download link

 JP Morgan shares have extended their strong run in recent years and posted a new all-time highs today after a pleasing earnings update. Source: xStation

Wells Fargo released mixed results ahead of today’s opening bell with the shine taken off an earnings beat due to a drop miss in revenue. Adjusted earnings per share of $1.16 were comfortably higher than the $1.07 consensus forecast but revenues of $22.05B came in below the $22.38B expected. The stock has dipped back a little in early trade following the release with a decline of around 0.70% at the time of writing. The share price has rallied strongly in recent months from around the 50 handle back in early September to yesterday’s peak of 63.63. 

link do file download link

 Wells Fargo has dipped today despite beating on earnings with the lower than expected Q4 revenue weighing on price. Source: xStation

Whilst it hasn’t reported its Q4 numbers just yet, Facebook is one of the biggest movers in US stocks today with a decline of more than 4%. The social media giant has been hit with a wave of selling after announcing major changes to its news feed. CEO Mark Zuckerburg said that the news feed will start prioritizing "meaningful social interactions" versus "relevant content". Zuckerburg admitted that this could mean that users spend less time on the network and also will likely see fewer posts from publishers and businesses. 

link do file download link

 Facebook shares opened sharply lower today as investors reacted negatively to the planned changes to the news feed on the website. Source: xStation

 

Disclaimer

This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.

Past performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.