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(Reuters) – Wall Street’s main indexes edged higher on Wednesday, supported by technology stocks, as investors parsed through a mixed bag of quarterly earnings reports from major U.S. banks.
FILE PHOTO: Traders wear masks as they work on the floor of the New York Stock Exchange as the outbreak of the coronavirus disease (COVID-19) continues in the Manhattan borough of New York, U.S., May 27, 2020. REUTERS/Lucas Jackson
Goldman Sachs gained 0.6% as strength in its trading business helped quarterly profit surge 94%. Bank of America slipped 2.5% after it missed revenue estimates and Wells Fargo shed 3% as its profit fell short of forecasts.
The S&P 500 banks index ticked 0.2% lower.
Analysts expect earnings for the financial sector to slump 12.1% in the third quarter from a year earlier, while overall S&P 500 companies are expected to report a 19.6% drop in earnings, according to Refinitiv IBES data.
“Markets are geared up for the earnings season, which should once again show that Corporate America is doing a little bit better than what people expected,” said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, North Carolina.
Technology stocks climbed 0.6% as Apple Inc firmed about 1% after sliding during an event on Tuesday when the company launched its next-generation iPhone 12.
Qualcomm Inc gained 2.2% as several brokerages raised their target price on the chipmaker’s shares.
An impasse over a COVID stimulus bill in Washington also kept the mood in check. Senate Majority Leader Mitch McConnell said the Republican-led Senate would vote next week on a targeted $500 billion coronavirus aid bill of the type Democrats already have rejected as they hold out for trillions in relief.
Fading hopes of a deal on federal aid as well as a halt in trials of a COVID-19 vaccine and a treatment pulled