Oct 16, 2019

Bank earnings and health care stocks helped the Dow turn positive in October

Illustration: Sarah Grillo/Axios

The Dow turned positive for October after solid earnings from some of the biggest U.S. banks and surprisingly solid earnings from health care companies. Both sectors have lagged the market this year.

What happened: Bank CEOs, including JPMorgan's Jamie Dimon and Citigroup's Michael Corbat, continued to tout the strength of the U.S. consumer.

  • Shares of JPMorgan Chase rose 3% after its revenue and earnings rose more than expected.
  • Wells Fargo rose 1.7% after a surprise increase in revenue, though its third-quarter profits fell more than expected.
  • Citigroup gained 1.4% after reporting quarterly sales and profits that beat expectations.
  • Goldman Sachs managed to see a 0.3% increase in its share price despite a 26% decline in profit from the year before.

Health care giant UnitedHealth Group and consumer health bellwether Johnson&Johnson both topped analyst expectations and raised their full-year profit guidance.

The big picture: The S&P closed 1% higher and the Nasdaq gained 1.24% after the positive earnings news.

Go deeper: Health care stocks roar after J&J, UnitedHealth beat earnings

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UBS issues a warning on earnings

Photo: Fabrice Coffrini/AFP via Getty Images

Investors have cheered largely better-than-expected company earnings in the third quarter, but those beats are masking an ugly truth, UBS investment bank equity strategists wrote in a note to clients Tuesday.

The big picture: "There is NO debate on S&P 500 forward earnings: a contraction appears imminent."

Go deeperArrowNov 6, 2019

Investors more bullish on good earnings and less bearish on bad

Photo: Robert Nickelsberg/Getty Images

U.S. stock market investors are showing their bullish bias this earnings season, buying big on companies that beat expectations and going easy on selling companies that miss.

What's happening: "Shares of companies that topped forecasts rose an average of 2% in the two days after reporting results, beating the five-year average of 1%, according to data compiled by FactSet. Those that fell short have averaged a 2.1% pullback, below the half-decade average of 2.6%," WSJ's Michael Wursthorn reports.

Go deeperArrowNov 4, 2019

The broader stock market hasn't moved much for most of the year

Illustration: Lazaro Gamio/Axios

Big moves in well-known companies like Tesla, Twitter, JPMorgan Chase and Ford have generated headlines this week but the broader market has been little moved. That's been true for the month, the quarter and the majority of the year.

By the numbers: As of market close Thursday, the S&P has risen 0.8% from its closing level a week ago; is up 1.1% so far in October; and up 2.3% since the end of Q2.

Go deeperArrowOct 25, 2019