The Dow Jones Industrial Average climbed over 200 points after better-than-expected earnings reports from the likes of banks, such as J.P.Morgan and Wells Fargo.
J.P. Morgan reported a rise in profits of 5 percent to $9.18 billion, or $2.65 a share, versus analysts’ average estimate of $2.35 a share. In addition, revenue went 5 percent higher to $29.9 billion, besting estimates by about $1.5 billion.
“A solid 1Q19 beat should be good news for the shares of both JPM and its universal bank peers,” said Jeffery Harte, an analyst at Sandler O’Neill & Partners.
Harte said he is beginning to “specifically see a positive read through for universal bank peers from JPM’s FICC and debt underwriting revenue beats.”
Higher interest rates contributed to higher net interest income, which grew by 8 percent.
“We had record revenue and net income, strong performance across each of our major businesses and a more constructive environment,” CEO Jamie Dimon said in a statement.
“Even amid some global geopolitical uncertainty, the U.S. economy continues to grow, employment and wages are going up, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong,” Dimon added.
The NASDAQ gained 0.5% and the S&P 500 was up 0.7 percent.
Wells Fargo shared in the earnings beat spotlight, reporting $1.20 per share as opposed to the $1.09 per share expected by Wall Street. Additionally, revenue came in at $21.609 billion versus a forecast of $21.012 billion.
Furthermore, Wells Fargo’s credit-card transactions totaled $18.3 billion, which represented an increase of 5 percent versus a year ago. Debit-card purchases increased by 6 percent to $86.6 billion and auto loans went up 24 percent to $5.4 billion.
“Several factors have driven a shift in our view including a lower