Markets React Favorably to Earnings Reports
Investors ended the week upbeat after learning that earnings are meeting or beating expectations on the Street.
Citigroup reported huge losses as expected - but the losses totaled $5.1 billion only half of the $10 billion reported the preceding quarter.
Google also helped swing moods by reporting earnings and revenue in excess of predictions.
What did good news mean to the markets? The Dow Jones industrial average jumped 228.87, or 1.81%, to 12,849.36. The Standard & Poor’s 500 index increased 24.77, or 1.81%, to 1,390.33, and the Nasdaq grew 61.14, or 2.61%, to 2,402.97.
There was a small bump on Wednesday when JPMorgan Chase & Co., Intel Corp. and Coca-Cola Co. reported profits that were stronger than predicted. But the week overall showed a comfortable upswing: the Dow rose 4.25%, the S&P 500 gained 4.31% and the Nasdaq jumped 4.92%.
Oil prices continued to rise. Oil jumped to $117 a barrel after reports that a militant group in Nigeria had sabotaged a major oil pipeline. The national average price of regular gas rose 2.7 cents to a record $3.445 a gallon.
Of course, there’s no need to get too excited. The year is still young and there is much news to react to. But for now, it seems like the worst may be over.
Tags: Earnings, Economy, Stock market
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