The selection remains at the gates of 8,900 points in a session marked by the drop in profits of the major Wall Street banks
European stock markets are continuing the bullish rally they started the new year, despite the symptoms of exhaustion that some stocks are starting to show. After rising another 0.6%, the Ibex-35 concludes its second week of gains with a cumulative rise of 2.1% in the last. A stretch that selectively allows it to stay at the gates of 8,900 points (it closed at 8,881) on last May’s highs.
The push from tourism stocks and banks was key to the performance, with Unicaja and IAG leading yesterday’s gains with gains of nearly 3%.
After Thursday’s release of US CPI data, which moderated to 6.5% in December, all eyes are now on Wall Street, where major US banks kicked off a new season of corporate earnings on Friday.
His figures have been received with some coldness. Not so much because of the drop in profits, which the market had already anticipated, but rather because of the uncertainty that the industry’s top managers have shown about the evolution of their company in the coming months.
Without going any further, Jamie Dimon, CEO of JP Morgan and one of the country’s most respected bankers, warned yesterday of the uncertainty that still lingers over the pace of economic recovery, even as US consumers continue to spend and companies show signs of good recovery. health.
Despite this, the manager says that “we still don’t know the ultimate impact of the headwinds from geopolitical tensions, including the war in Ukraine, the fragile state of energy and food supplies, continued inflation eroding purchasing power and the unprecedented tightening of monetary policy.
The profit of the entity he commands was $36,676 million (34,817 million euros) in 2022, 22% less than the previous year. And the trend is repeating itself across the industry.
BNY Mellon earned 34% less, to $2.18 billion, while Bank of America’s profit was $24 billion, down 15%. For its part, Citigroup earned 13.7 billion, 32% compared to the previous year, also due to the need to allocate larger provisions for its loan portfolio. Wells Fargo was the worst performing entity, with profits down 40% last year.
Despite the drop in earnings, all of these entities at least beat analyst consensus expectations, which were much more pessimistic about the industry.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
