NEW YORK: Wall Street was higher on Wednesday as bank earnings kicked off on an upbeat note, with JPMorgan topping profit estimates, and China’s strong trade data raised hopes that the world’s second largest economy was on the road to recovery.
Shares of JPMorgan, which kicked off Wall Street bank earnings, were up 3.1% at US$61.13. Other bank stocks were also trading up, with Bank of America rising 2.8% and Citigroup gaining 3%.
The results added to upbeat Chinese data, which showed March exports handily beat expectations, rising for the first time in nine months.
Global markets logged strong gains following the data.
However, a report on Wednesday showed US retail sales unexpectedly fell 0.3% in March, missing the estimated 0.1 percent rise, more evidence that economic growth stumbled in the first quarter.
“I think all of these factors could cause a very volatile session today, with an upward bias,” said Peter Cardillo, chief market economist at First Standard Financial in New York.
At 9:37am ET, the Dow Jones industrial average was up 132.91 points, or 0.75%, at 17,854.16, the S&P 500 was up 13.9 points, or 0.67%, at 2,075.62 and the Nasdaq Composite was up 40.40 points, or 0.83%, at 4,912.50.
The S&P financials sector led the rise in seven of the 10 major S&P sectors, rising 1.65%.
JPMorgan gave the biggest boost to the S&P 500, while Goldman Sachs’ 2.7% increase propped up the Dow.
Crude fell about 1% on Wednesday, reversing course from a strong rally on Tuesday, on fears that a potential freeze in production may do little to curb a global glut.
Harley-Davidson rose 4.9% to US$47.07 after UBS said it expected the company’s March retail sales to beat analysts’ estimates.
Advancing issues outnumbered decliners on the NYSE by 2,084 to 602. On the Nasdaq, 1,775 issues rose and 479 fell.
The S&P 500 index showed 14 new 52-week highs and one new low, while the Nasdaq recorded 14 new highs and three lows. - Reuters
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