US Stocks Rise as Big Banks Beat Estimates, Consumer Sentiment Slides

New York (Oct 14)  Stocks moved higher on Friday as a series of big banks, including JPMorgan (JPM) , beat Wall Street estimates.

The S&P 500 was up 0.65%, the Dow Jones Industrial Average rose 0.75%, and the Nasdaq added 0.7%.

JPMorgan rose nearly 2% after topping lowered earnings estimates in its recent quarter. Profit in the third quarter slid 7.6% as a volatile market and a low interest-rate environment depressed the bottom line. Per-share earnings of $1.58 fell a dime from a year earlier, but beat estimates of $1.39 a share. The largest U.S. bank by assets also reported a 8.4% increase in revenue to $25.51 billion, exceeding forecasts of $24 billion.

The big bank kicked off the earnings season for the financials sector. Financials endured a rocky quarter in the wake of the Brexit decision in late June which caused market turmoil. Banks have also had to weather an environment of low interest rates with a cautious Federal Reserve holding its monetary policy at crises levels.

Citigroup (C) climbed after exceeding analysts' estimates on its top- and bottom-lines in its third quarter. The bank earned $1.24 a share, 8 cents above forecasts. Revenue slid 4% to $17.76 billion, edging past estimates by $420 million.

Wells Fargo (WFC) also moved higher following a better-than-expected third quarter. The bank, which has recently been embroiled in a sales scandal, earned $1.03 a share over its recent quarter. Analysts had anticipated earnings of $1.01 a share. Revenue climbed nearly 2% to $22.3 billion, narrowly beating forecasts by $80 million.

Source: TheStreet