U.S. stocks finished the session mixed as investors weighed strong earnings from Goldman Sachs and Wells Fargo against new data that showed consumer prices may be rising at an inflationary pace.
|I:DJI||DOW JONES AVERAGES||34548.53||+318.19||+0.93%|
|GS||THE GOLDMAN SACHS GROUP, INC.||365.57||+8.08||+2.26%|
The Dow Jones Industrial Average closed over 50 points higher or 0.16%, giving up a nearly 200 point advance. Still, Goldman remained a winner following record results. The investment bank's profits jumped nearly 500% after earning $18.60 per share, beating by a wide margin, the $10.22 estimate polled by Refinitiv. Revenue was $17.7 billion, also topping estimates of $12.61 billion. The firm also noted it held its #1 ranking for worldwide M&A.
|I:COMP||NASDAQ COMPOSITE INDEX||13632.841845||+50.42||+0.37%|
|BBBY||BED BATH & BEYOND, INC.||24.91||+0.52||+2.13%|
The S&P 500 hit a fresh record with a modest jump before closing down 0.41%, while the Nasdaq Composite slipped 0.99% plagued by a drop in Bed Bath & Beyond shares. The home retailer tumbled after disappointing quarterly results which included a 20% drop in comparable-store sales.
The Federal Reserve's Beige Book, released in the late afternoon, noted that while "national economic activity accelerated to a moderate pace" prices also "accelerated slightly since the last report, with many Districts reporting moderate price increases and some saying prices rose more robustly" according to the report.
The data came following Federal Reserve Chairman Jerome Powell's remarks before the Economic Club of D.C. in which he reiterated cyber attacks are a bigger threat to the U.S. financial system versus another 2008-style implosion.
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In other news, Coinbase shares soared closing up 31% in its Nasdaq direct listing debut opening at $381 per share. The highly anticipated offering is now the first major publically traded cryptocurrency company.
As for additional bank earnings, JPMorgan, in a sign the U.S. economy is improving, released $5.2 billion of reserves during the quarter, decreasing the size of its buffer to $26 billion. Still, shares dipped.
This as the lender earned $14.3 billion, or $4.50 per share, as revenue rose 14% year over year to $33.12 billion. Wall Street analysts surveyed by Refintiv were expecting JPMorgan to earn $3.10 per share on revenue of $30.52 billion.
|JPM||JPMORGAN CHASE & CO.||160.81||+3.27||+2.08%|
CEO Jamie Dimon noted the quarter reflects a "strong underlying performance across our businesses, partially driven by a rapidly improving economy…"
Wells Fargo's profits bounced posting $4.74 billion for the first quarter, up from $653 million a year earlier. Revenue came in at $18.06 billion, up 2% from $17.72 billion a year earlier. That beat the $17.52 billion expected by analysts.
|WFC||WELLS FARGO & CO.||46.60||+0.76||+1.66%|
In other sectors, energy stocks also rose after a bigger-than-expected drop in oil supplies, along with a large surprise draw in distillates. Oil ticked up over 4% moving closer to the $63 per barrel level.
|XLE||ENERGY SELECT SECTOR SPDR ETF||52.69||+0.27||+0.52%|
In other economic news, import and export prices for March rose more than expected last month rising 1.2% and 2.1%, respectively. On Tuesday, the U.S. government reported consumer prices increased by a stronger-than-expected 0.6% in March, the fastest rate since 2012.