The stock exchanges in New York started a new trading session with gains on Wednesday. Investors on Wall Street were confronted with a large amount of company data, including those from financial groups such as Bank of America, Citigroup and Wells Fargo.
The profits of those banks rose sharply. In addition, large sums of money previously set aside to deal with the corona crisis were rereleased, almost tripling net income at Bank of America. After that, however, earnings fell against overall expectations, causing the stock to lose 1.8 percent.
Citigoup (plus 2.3 percent) was able to offset a decline in credit card loan and trading services revenues with billions of dollars in released provisions, driving profits sharply. Wells Fargo, the largest mortgage lender in the United States, fell 0.1 percent after presenting its quarterly results. Asset manager BlackRock fell 2.9 percent after announcing results.
The Dow-Jones index climbed 0.4 percent to 35,039 points in the first trading minutes. The broad-based S&P 500 gained 0.5 percent to 4,392 points, and technology exchange Nasdaq rose 0.8 percent to 14,790 points.
A new statement from Federal Reserve chairman Jerome Powell also rattled the mood. The US economy has not yet recovered enough from the corona pandemic that the time is right to buy fewer bonds each month, he wrote ahead of a congressional hearing. The stimulus is intended to stimulate the economy.
Another company that received a lot of attention was Delta Air Lines. The airline reported in its quarterly figures that it was again operating as many flights within the US for holidays as in 2019. However, business travel and international flights were still lagging due to the corona crisis, so that revenue from ticket sales was half lower than before the pandemic. Nevertheless, the stock gained 0.6 percent.