Financials Lead Dow Higher After Better-Than-Expected Earnings From Bank Of America
Bank of America shares rose sharply on Monday, leading financial stocks higher, while the broader market struggled for gains as the corporate earnings season kicked into full swing. The banking giant’s stock rose 4.31 percent and posted its best day since March 26, when it gained 4.35 percent. Bank of America gained after the company reported better than expected earnings and revenue. Financials rose 1.8 percent. The SPDR S&P Bank ETF gained 1.3 percent.
The major stock indexes, meanwhile, struggled for gains for most of the session as other large U.S. companies released their quarterly results.
The Dow Jones Industrial Average rose just 44.95 points to 25,064.36 with Caterpillar, Johnson & Johnson and Exxon Mobil as the biggest laggards and J.P. Morgan Chase outperforming. The S&P 500 slipped 0.1 percent to 2,798.43 as a decline in energy stocks offset gains in financials. The nasdaq Composite closed 0.3 percent lower at 7,805.72 as Amazon gave back most of its gains. Amazon eased from an all-time high amid glitches at the start of Prime Day.
However, BlackRock shares slipped 0.6 percent. J.B. Hunt fell 0.6 percent after rising as much as 6.7 percent. Wall Street has high hopes for this earnings season, with analysts expecting second-quarter profits to have grown by 20 percent from last year, according to FactSet. Earnings for the first quarter grew by 24 percent.
BUY DOW JONES AT: 25050, TAKE PROFIT AT: 25234, STOP LOSS AT: 24965