The three major U.S. equity indexes closed sharply higher on Thursday, following a sharply lower opening. The Dow Jones industrials ended the day up 2.83%, the S&P 500 closed 2.6% higher and the Nasdaq saw a gain of 2.23%. All 11 sectors closed higher, with financials (4.14%) and energy (4.08%) posting the biggest gains. Consumer cyclicals (0.98%) and consumer staples (1.61%) posted the smallest gains.
The consumer price index (CPI) for September came in hotter than expected, but investors appear to have treated that as a good entry point for equities.
Retail sales were flat month over month in September, missing the consensus estimate for a rise of 0.2%.
All three major indexes were trading lower about 90 minutes after the opening bell.
Before markets opened on Friday, UnitedHealth reported better-than-expected adjusted earnings per share (EPS) and revenues. The company also reported fiscal 2022 guidance in line with expectations. The stock traded up about 2.6%.
Wells Fargo also reported beats on both the top and bottom lines and a provision for credit losses of $385 million. Shares traded up nearly 2.9%.
JPMorgan topped both top-line and bottom-line estimates. The bank set aside $808 million to backstop potential loan losses. Shares traded 1.7% higher Friday morning.
Citigroup posted better-than-expected EPS and revenue as well. Its provision for loan losses totaled $370 million. The stock traded up by about 1.3%.
Morgan Stanley missed estimates on both the top and bottom lines. The bank’s provision for loan losses was $34 million, but a 30% drop in investment banking revenue sealed its fate. Shares traded down some 4%.
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