NEW YORK, RAW – The S&P 500 has ended higher, led by gains in shares of big growth names like Amazon 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 gains following the release of minutes from the September Federal Reserve policy meeting.
US central bankers signalled they could start reducing crisis-era support for the economy in mid-November, though they remained divided over how much of a threat high inflation poses and how soon they may need to raise interest rates, the minutes showed.
Earlier, a Labour Department report showed consumer prices increased solidly in September, further strengthening the case for a Fed interest-rate hike.
Shares of JPMorgan fell and were among the biggest drags on the Dow and S&P 500 even though its third-quarter earnings beat expectations, helped by a global dealmaking boom and release of more loan loss reserves.
The day’s corporate results kicked off third-quarter earnings for S&P 500 companies.
“My hope is that as we work our way through earnings season that the forward-looking guidance will be good enough that we’ll close the year higher. But right now the market is in a show-me phase,” said Jim Awad, senior managing director at Clearstead Advisors in New York.
Mega-caps growth names including Amazon, Google-parent Alphabet, and Microsoft all rose.
According to preliminary data, the S&P 500 gained 14.20 points, or 0.33 per cent, to end at 4,364.85 points, while the Nasdaq Composite gained 105.71 points, or 0.73 per cent, to 14,571.64.
The Dow Jones Industrial Average rose 4.35 points, or 0.01 per cent, to 34,382.69.
BlackRock also gained after the world’s largest money manager beat quarterly profit estimates as an improving economy helped boost its assets under management, driving up fee income.
Bank of America, Citigroup, Wells Fargo and Morgan Stanley will report results on Thursday, while Goldman Sachs is due to report on Friday.
Analysts expect corporate America to report strong profit growth in the third quarter but worries have been mounting over how supply chain problems, labour shortages and higher energy prices might affect businesses emerging from the pandemic.
Among other stocks, Apple dipped after a report said the iPhone maker was planning to cut production of its iPhone 13.