Dow down nearly 200 points as banks signal cautious recovery, Washington negotiates over pandemic stimulus

U.S. stock benchmarks were lower Wednesday, but off the session’s worst levels, as Congress and the White House wrangled over further pandemic aid and big banks kicked off third-quarter corporate earnings season with a cautious tone.

How are stock benchmarks performing?

The Dow Jones Industrial Average DJIA, -0.52% slumped 131 points, 0.5%, to trade near 28,544, while the S&P 500 SPX, -0.63% index fell 18 points, 0.5%, to 3,493. The Nasdaq Composite COMP, -0.82% dropped 81 points, or 0.7%, to 11,781.

On Tuesday

What’s driving the market?

Wednesday marked the second full day of corporate quarterly earnings reports from the likes of Bank of America BAC, -4.30%, Goldman Sachs GS, +0.23% and Wells Fargo WFC, -5.43% as investors looked for signs of economic recovery.

Bank of America reported $20.45 billion in total revenue, missing the $20.8 billion estimate of analysts surveyed by Refinitv, while income was at $4.9 billion, or 51 cents a share, from $5.8 billion, or 56 cents a share, in the year-ago period, but above the FactSet consensus of 49 cents a share.

Goldman reported better-than-expected earnings and revenue that helped to boost the investment bank’s shares. The bank reported earnings per share of $9.68 per share, compared with $5.57 expected by Refinitiv’s consensus estimates, while revenue came in at $10.78 billion, versus consensus estimates for $9.46 billion.

“Bank CEOs were a little bit more cautious than some people were expecting them to be,” said Matt Peron, director of research at Janus Henderson Investors, in

Read More Here...

Bookmark the permalink.

Comments are closed.