Banks’ results that exceeded expectations are not enough to put Wall Street in the green

Earnings season started off on the right foot in the US and equity markets responded in concert at the beginning of the session. However, a report on consumer confidence from the University of Michigan for July showed values ​​rose near two-year highs, shattering optimism that prices will slow and that the Federal Reserve is about to end more aggressive monetary policy. turn.

After four sessions of gains in the global benchmark index, Standard & Poor’s 500, the “traders” justified their greater caution today by “consolidating” positions. Despite a slight decline on Friday, the index posted its best week since March

The Dow Jones Industrial Average rose 0.34% to 34,510.61 points, while the Standard & Poor’s 500 Index lost 0.1%, to 4,505.69 points. The Nasdaq Technology Index fell 0.18% to 14,113.70 points.

Among the major moves, JP Morgan, North America’s largest bank, started the session up more than 2%, but ended with a gain of just 0.69%. The Jamie Dimon-led organization reported revenue of $42.4 billion and earnings of $4.37 per share, above market expectations. Analysts estimated earnings of $4 per share and revenue of $38.96 billion, according to Refinitiv data, which was surveyed by CNBC.

In the banking sector, Wells Fargo’s results also beat estimates, but the listed company lost 0.34%. Led by Charles Scharf, the bank reported revenues of $20.53 billion, compared to the $20.12 billion the market expected. Earnings came in at $1.25 per share — up 57% year-over-year when $1.16 was expected, according to CNBC’s own data.

City also exceeded analysts’ expectations, despite scoring Its profits amounted to $7,521 million (6,706 million euros) in the first half of the year, 15% less than what it made in the same period in 2022.

Insurance giant UnitedHealth, which also filed accounts on Friday, rose 7.24%, after delivering better-than-expected results and after revising its forecasts upward for the rest of the year, negating fears that the Minnesota-headquartered listed company was being punished by Increased demand for non-urgent surgical and emergency services.

“The good macroeconomic news has already been incorporated into the price of the S&P 500 listed index,” UBS analyst Solita Marcelli explained in a note seen by Bloomberg.

“In the second half of the year, we expect an environment in which inflation will continue to decline, and the growth of the US economy should also slow. This situation is good for bonds, but not for stocks. At the same time, the amount of uncertainty about the impact of previous interest rate increases means a recession A very strong influence from the Federal Reserve’s monetary policy remain potential risks.”