How the major United States stock indexes fared Friday

  • How the major United States stock indexes fared Friday

How the major United States stock indexes fared Friday

Wall Street romped through the first day of earnings season, with Disney shares hitting a record high on the back of its new streaming service. Eastern Time. The benchmark index erased its losses for the week and is now on track to post its third straight weekly gain.

Advancing issues outnumbered decliners by a 1.87-to-1 ratio on the NYSE and by a 1.38-to-1 ratio on the Nasdaq.

Banks led the profits following quarterly profit reports from JPMorgan Chase and Wells Fargo opened the round of highly expected company earnings. Banks have been benefiting from higher interest rates, which allows them to book fatter profits from making loans.

Disney surged to an all-time high after it announced plans to offer its own video streaming service.

Netflix shares were down 3.6%.

ANALYST'S TAKE: The market is coming off a wobbly week as investors anxious that the early first-quarter earnings reports would come in even weaker than the low expectations analysts already have.

Since then, the three major indexes notched their best quarterly gains in almost a decade in the first quarter, but have spent April in a holding pattern ahead of first-quarter earnings season.

The S&P financial index rose 2.3%, providing the biggest boost to the main index, while the S&P banks index gained 2.9%.

At 12:53 p.m. ET the Dow Jones Industrial Average was up 232.89 points, or 0.89%, at 26,375.94, the S&P 500 was up 15.75 points, or 0.55%, at 2,904.07 and the Nasdaq Composite was up 26.29 points, or 0.33%, at 7,973.65. The average still finished slightly lower for the week.

In Europe, the London FTSE rose 7 points to 7,425.1, the French CAC increased 0.3% to 5,503.3 and the German DAX jumped 0.5% to 11,997.7. The Nasdaq rose 18 points, or 0.2%, to 7,966.

Technology, communications and industrial companies also helped lift the market. Health care was the only sector to lose ground.

However, of the 29 companies in the S&P 500 that have reported thus far, 79.3% have come in above analyst expectations. That marks a turnaround from a severe contraction in February as the US and China continue negotiating a resolution to their costly trade war.

"It wasn't as bad as people had expected it might be", he said.

Investors continue focusing on company earnings reports due over the next few weeks in hopes of gleaning clues about the trajectory of the US economy. Citigroup, UnitedHealth Group and Johnson & Johnson are among the bigger companies releasing results next week. Analysts had been expecting exports to rise 6.5% and imports to edge up 0.2%. The expected drop in profits is due nearly entirely to weaker profit margins.

Exports surged past expectations in March, rising 14.2% in United States dollar terms from the previous year amid the ongoing trade dispute with the U.S., following a 20.8% drop in February. The stock fell 2.6%.

JPMorgan Chase jumped 4.5% after reporting a solid increase in earnings. Those higher rates allow banks and financial companies to charge more for loans and credit cards.

So as to create the service, disney ended a profitable licensing association with Netflix. It faces challenges as it builds a service to compete with the entrenched streaming leaders, which also include HBO Go and Showtime.

The blue chips were doing just fine despite a drop from Chevron, which fell after announcing a $33 billion deal to acquire Anadarko Petroleum Corporation. Shares of Anadarko jumped 30.3%, while Chevron fell 4%.

The two money center banks each beat Street expectations, and investors reacted swiftly, sending futures higher. The euro strengthened to $1.1296 from $1.1258.