Party on Wall Street. The S&P 500 Index and the Dow Jones Index both reached all-time highs on Friday, after some major US banks presented better than expected results.
These are the final positions:
Dow: 21,658.51, +105.42, (0.49%) S & P 500: 2,461.98, +14.15, (0.58%) Nasdaq: 6.317.97, +43.53, (0.69%)
The Dow Jones Index also hit a new all-time high on Wednesday evening. The bull market in US stocks continues to perform well. As you may know, more expectations of a less tight monetary policy are now being introduced here, while at the same time the economy continues to recover, expectations for further rising corporate profits. Also, the US Senate could have contributed a little bit to last week, as the latter has postponed its holidays by two weeks to get the health reform in the summer.
Quarterly season is expected to show good growth rates again
The US quarterly season has begun last week and the S&P 500 companies are expected to grow at least 8% on average. This is slightly less than the expectations for the first quarter, with an average growth rate of 15%. Experts also expect a double-digit growth rate in the second quarter. To this extent, the stability in US equities could still accompany us. And as the chart below makes clear, the upper trend line might well be driven soon. The seasonally stable phase in July could also support this development.
At the banks JPMorgan performed particularly well with a reported earnings per share of $1.82, while analysts accounted for $1.58. Wells Fargo also reported a higher than expected earnings per share of $1.07, but failed to beat the estimates.
Telecom company Sprint has reportedly called for Warren Buffett to see if the super investor wants to invest in the company. The Sprint’s chairman, Masayoshi Son, wants to see if Buffett wants to get a deal that, according to The Wall Street Journal, can get $10 billion worth.
The optimism about the American economy since the US elections has disappeared. An indicator of consumer confidence from the University of Michigan showed its lowest level since last November.