© Reuters. FILE PHOTO: A Wall Street street sign is seen outside the New York Stock Exchange (NYSE) in New York City, New York, US, July 19, 2021. REUTERS/Andrew Kelly
Written by Caroline Falkevich
NEW YORK (Reuters) – Shares closed higher on Wednesday, led by gains in shares of big growth companies such as Amazon.com and Microsoft, but JPMorgan shares fell and weighed on the index even though the bank beat earnings expectations.
The S&P 500 briefly added to the gains after the release of the September Federal Policy Meeting minutes.
The minutes showed that US central bankers indicated they may start reducing crisis-period support to the economy in mid-November, although they remained divided on how much of a threat high inflation posed and how much interest rate hikes were needed.
Earlier, a report from the Labor Department showed consumer prices rose strongly in September, strengthening the case for a Fed rate hike.
Shares of JPMorgan Chase & Co (NYSE:NYSE) fell and were among the biggest drags on the Dow and S&P 500 indexes even though its third-quarter profit beat expectations, buoyed by a global deal-making boom and the release of more loan-loss reserves.
Corporate results today released third-quarter earnings for the S&P 500 companies.
“My hope is that while we work our way through earnings season, the forward-looking guidance will be good enough to close the year higher. But the market is now in the review phase,” said Jim Awad, senior managing director at Clearstead Advisors LLC in New York.
Big company growth names including Amazon.com Inc (NASDAQ :), parent Alphabet of Google (NASDAQ 🙂 and Microsoft Corporation (NASDAQ 🙂 All rose.
According to preliminary data, the S&P 500 index rose 14.20 points, or 0.33%, to close at 4,364.85 points, while the Nasdaq Composite Index rose 105.71 points, or 0.73%, to 14,571.64. The Dow Jones Industrial Average rose 4.35 points, or 0.01 percent, to 3,4382.69 points.
BlackRock Inc (NYSE:) also posted gains after the world’s largest money management company beat quarterly earnings estimates as an improving economy helped boost its assets under management, driving up fee income.
Bank of America (NYSE:), City Group (NYSE :), Wells Fargo (NYSE 🙂 and Morgan Stanley (NYSE:) will release results on Thursday, while Goldman Sachs (NYSE:) is due on Friday.
Analysts expect US companies to report strong profit growth in the third quarter, but concerns are mounting about how supply chain problems, labor shortages and rising energy prices will affect companies emerging from the pandemic.
Among other stocks, Apple Inc (NASDAQ 🙂 pulled back after a report that the iPhone brand plans to cut production of its iPhone 13.
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