(Reuters) – Wall Street climbed more than 1 percent on Friday following its worst two-day slide in eight months, with technology and other high-growth stocks leading a fight back.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., October 11, 2018. REUTERS/Brendan McDermid
JPMorgan Chase & Co (JPM.N) and Wells Fargo (WFC.N) reversed earlier gains to tread lower after their quarterly results, while Citigroup (C.N) was up 1 percent as its profit topped estimates. [nL4N1WS456] [nL4N1WS4F8] [nL4N1WS4GE]
The bank results launch a quarterly reporting season that will give the clearest picture yet of the impact on profits from President Donald Trump’s trade war with China.
“The market is going to focus on not just current quarter earnings, but guidance going forward, particularly as it relates to the profit margins. You’ve got some indications of rising wage pressure and higher interest rates,” said Willie Delwiche, investment strategist at Robert W. Baird in Milwaukee.
“The underperformance from banks and financial sector even as rates have moved higher has been a bit of a warning sign for the market overall. If you can get banks starting to trend higher and providing some leadership for the market, then that helps switch some of the fears that are in the market overall.”
Earnings at S&P 500 companies are estimated to have risen 21.3 percent in the third quarter, according to I/B/E/S data from Refinitiv, a slowdown from the previous two quarters.
A trader pauses as he works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., October 11, 2018. REUTERS/Brendan McDermid
Wall Street’s two-day slide this week was