Wall Street indexes closed mixed on Wednesday, with the Nasdaq Composite and S&P 500 falling despite another record intraday high for the latter and big banks’ stellar results on the first day of earnings season.
Shares of Goldman Sachs Group Inc and Wells Fargo & Co rose 2.3% and 5.5% respectively on bumper first-quarter profits.
Goldman capitalized on record levels of global dealmaking activity, and Wells reduced bad loan provisions and got a grip on costs tied to its sales practices scandal.
JPMorgan Chase & Co’s shares fell 1.9% despite the largest U.S. bank’s earnings jumping almost 400%, as it released more than $5 billion in reserves to cover coronavirus-driven loan defaults.
“The bank earnings were strong, but the market expected them to be strong,” said Christopher Grisanti, chief equity strategist at MAI Capital Management.
“So the question becomes how do the bank stocks rise more from here. That’s not clear. They have had a nice ride. I think there will be other places to make money more easily in the future.”