Dow returns 237 points for success

admin October 16, 2019

12 1 minute read

Blockbuster revenue from such as JPMorgan Chase ( JPM ) and UnitedHealth ( UNH ) Dow climbs 237 points, or 0.9%.

After several weeks of trying to decipher the latest developments in the trade war, the start of the earnings season has allowed investors to focus on the basics.

Expectations of corporate profits have been very subdued due to reduced economic growth. The IMF on Tuesday cut its global growth forecast for 2019, asking for the slowest pace since the financial crisis.

Consumers still use, says JPMorgan Chase CEO Jamie Dimon

[194559004] However, major banks on the front lines of the US economy reported the most positive results on Tuesday.

JPMorgan posted record revenues and profits shattered expectations, despite the challenging interest rate environment. Citigroups ( C ) results also topped the estimates. And although Wells Fargo & # 39; s ( WFC ) legal surplus drove its profits significantly lower, the scandal-lent share advanced after it looked out for prospects.

"The bank's results were better than feared. It drives a lot of optimism," said Dan Suzuki, portfolio strategist at Richard Bernstein Advisors.

Jamie Dimon, CEO of JPMorgan, said American households remain "healthy" despite the slowdown. However, Dimon acknowledged that consumer power is "offset by weakening business sentiment" and spending driven by trade tensions and "increasingly complex geopolitical risks."

Although JPMorgan fires on all cylinders, Goldman Sachs [19659002] ( GS ) reported disappointing investment banking revenues. The Wall Street firm was hurt by slowdowns in M&A and problems in the stock market. Goldman Sachs also revealed a $ 80 million hit from the investment in WeWork after the previous startup's listing was imploded.

The hottest sector on Tuesday was health care.

UnitedHealth increased by 8%, leading the S&P 500 higher after the country's largest health insurer increased its forecast for 2019 and gave positive expectations for next year. It was UnitedHealth's best day since May 2009. The news lifted rivals including CVS Health ( CVS ) Anthem ( ANTM ) and Cigna ( CI ) .

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