(New York) The New York Stock Exchange opened sharply higher Thursday after a burst of strong bank results and a decline in weekly jobless claims in the United States.
Posted on October 14, 2021 at 9:37 a.m.
Updated at 10:32
At 10:15 a.m., the Dow Jones was up 1.07%, the NASDAQ by 1.40% and the S&P 500 by 1.21%.
The day before, after a volatile session marked by the announcement of an acceleration in US inflation, the Dow Jones index had remained in equilibrium at 34,377.81 points.
The tech-heavy NASDAQ gained 0.73% to 14,571.63 points, while the S&P 500 advanced 0.30% to 4,363.80 points.
“US stocks are trading nicely higher early in the session, after a slew of reports on financial sector earnings as the third quarter earnings season begins,” Schwab analysts said with satisfaction.
Other good news on the macroeconomic front, “weekly jobless claims fell more than expected to fall for the first time below the 300,000 mark since the start of the pandemic,” they also noted. Between October 3 and 9, 293,000 people registered as unemployed, 36,000 less than the previous week.
“This is a clear and welcome drop that brings the level of applications for benefits closer to the average of 218,000 observed in 2019,” noted Rubeela Farooqi, chief economist for for HFE who forecasts a continued decline in these weekly jobless claims .
To this, we had to add a wholesale price index for September weaker than expected at + 0.4% over the month against projections of + 0.6%. Over one year, however, the producer price index in the United States climbed to + 8.6%, the largest increase since 2010.
Among stocks, bank securities were in demand after good results boosted by the reduction in reserves built up at the start of the pandemic.
Bank of America (+ 2.09% to $ 44.04) saw its profit jump 58% in the third quarter, helped by the improving economy which allowed it to reduce these reserves. Its net profit reached $ 7.69 billion.
Despite a 48% increase in the third quarter for Citigroup, reaching $ 4.6 billion, the company’s stock was down slightly (-0.43% to $ 70.02) as its volume of loans granted was in decline. decrease.
After an initial jump, the stock of US investment bank Morgan Stanley fell 0.56% to $ 98 after the bank reported better than expected results.
The group posted a net profit of $ 3.71 billion from July to September, up 36% from the same period last year.
Aircraft maker Boeing was down 1.03% to $ 219.57 after confirming Thursday that a manufacturing defect was found on its long-haul 787 Dreamliner, a model already affected by a series of technical issues.
The bond yield on 10-year Treasury bills eased slightly to 1.52% from 1.53% the day before.