Dow, S&P 500 end week at records; dollar tumbles
NEW YORK: Wall Street stocks finished at fresh records Friday following solid bank earnings, while the dollar retreated after lackluster US data raised questions about additional Federal Reserve rate hikes. The Dow and S&P 500 ended at fresh records in anticipation that teh positive bank results foreshadow a generally strong earnings period. The records, the third in a row for the Dow, capped a strong week for US stocks that some analysts attributed to commentary from Fed Chief Janet Yellen that was more dovish than expected.
Equity markets elsewhere were mixed, with London and Frankfurt down, Tokyo up and Paris flat. JPMorgan Chase, Citigroup and Wells Fargo all reported higher earnings than expected by Wall Street analysts, showing the benefits of higher US interest rates, despite a drop in revenue from trading divisions. However, share prices for all three banks fell, with JPMorgan losing 0.9 percent, Citigroup 0.4 percent and Wells Fargo 1.1 percent.
“The fact that the banks started off the earnings season with very good earnings will bode well,” said Bill Lynch, director of investment at Hinsdale Associates. “Most strategists expect the season to be a good one with earnings going up at least six percent, maybe as much as nine per- cent.” On foreign exchanges, the dollar struggled after disappointing US inflation and retail sales data for June, falling against the pound and the euro. “The morning’s data, particularly the cooler than expected CPI figures, seem to justify Fed Chair Janet Yellen’s more cautious tone this week in her Congressional testimony,” said Omer Esiner, analyst at Commonwealth Foreign Exchange.
“The lack of meaningful evidence of a strong rebound in the economy in the second half of this year could continue to keep the dollar pressured.” Oil prices rose for the fifth straight day amid signs of greater balance between supply and demand.—AFP