* Goldman Sachs up as profit jumps on record dealmaking
* JPMorgan falls despite profit surging nearly five-fold
* Coinbase jumps on Nasdaq listing
* Dow up 0.36%, S&P 500 down 0.32%, Nasdaq down 0.60%
(Adds comments, details, updates to afternoon)
By Shivani Kumaresan, Shreyashi Sanyal and David French
April 14 (Reuters) – The S&P 500 dipped after hitting
a record high for the fourth session in five and the Dow
Industrials rose on Wednesday, as Wall Street banks
kicked off earnings season with first-quarter numbers that
lifted hopes for a strong corporate rebound.
Goldman Sachs Group Inc GS.N rose 3.4% after it reported a
massive jump in profit, capitalizing on record levels of global
dealmaking activity. JPMorgan Chase & Co’s JPM.N shares fell 1.4% even as the
largest U.S. bank’s earnings jumped almost 400%, as it released
more than $5 billion in reserves to cover coronavirus-driven
loan defaults. Wells Fargo & Co WFC.N jumped 5.5% after the bank bounced
back to a profit of almost $5 billion, ahead of Wall Street
estimates, as it reduced bad loan provisions and got a grip on
costs tied to its sales practices scandal. “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
Despite bumper trading and investment-banking revenue,
lending by both JP Morgan and Wells Fargo fell from a year ago.
Investors will be watching this metric carefully in the upcoming
earnings of smaller banks, which are more focused on traditional
lending and deposit-taking.
“Financials have done well for a while, so we’re happy with
that now but will we reach a point of diminishing returns in
that sector? I don’t know,” said Drew Horter, president and
chief investment officer of Tactical Fund Advisors in
The S&P 500 financials sector was one of the best
performers in the first quarter, rising 15% even as the Federal
Reserve pledged to keep interest rates low in the near future.
It rose a further 0.8% on Wednesday.
The S&P 500 energy sector was the largest gainer
among the 11 sub-indexes, jumping 3.1% as it tracked higher oil
At 2:41 p.m. ET, the Dow Jones Industrial Average
rose 121.26 points, or 0.36%, to 33,798.53; and the S&P 500
lost 7.62 points, or 0.18%, at 4,133.97.
The Nasdaq Composite dropped 84.01 points, or 0.6%,
to 13,912.09, with high-flying technology stocks including Apple
Inc , Microsoft Corp and Tesla Inc
weighing on the index.
Coinbase Global Inc jumped upon its listing on the
Nasdaq on Wednesday. Its shares opened at $381 versus a
reference price of $250. Cryptocurrency and blockchain-related firms including Riot
Blockchain and Marathon Digital Holdings fell
after soaring ahead of Coinbase’s debut and as bitcoin hit a
record high of over $63,000 on Tuesday.
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