Stocks rebound as investors cheer banks

Click the chart for more stock market data.

NEW YORK (CNNMoney)

The Dow, S&P 500, and Nasdaq all moved slightly higher out of the gate.

After a sharp sell-off Monday, investors turned to bank earnings to get a sense of the economy's health.

JPMorgan Chase (JPM, Fortune 500) posted a fourth-quarter profit of $5.3 billion, including a $1.1 billion write-off for legal expenses. But earnings topped expectations. Shares of JPMorgan rose on the news.

The bank has settled numerous lawsuits in the past year, including over its behavior in the run-up to the mortgage crisis and for turning a blind eye to Ponzi schemer Bernard Madoff.

Wells Fargo (WFC, Fortune 500) also released earnings that slightly beat estimates, though it reported a big drop in mortgage activity. Shares were down in early trading.

This is just the beginning. Investors are readying themselves for a slew of quarterly earnings announcements over the coming weeks. Four other big banks are due to report their results later this week: Bank of America (BAC, Fortune 500), Citigroup (C, Fortune 500), Goldman Sachs (GS, Fortune 500) and Morgan Stanley (MS, Fortune 500).

Related: Fear & Greed Index still shows Greed

Investors have been nervous that earnings may not be strong enough to justify higher stock prices. Mike van Dulken, head of research at Accendo Markets noted that a new report from Goldman Sachs said valuations for the stocks in the S&P 500 were lofty by almost any measure and that further gains may be difficult to achieve.

And after a tepid December jobs report, investors are looking for further signs of strength in the economy.

Retail sales for December came in slightly better than expected, as retailers offered big promotions due to a shortened holiday seasons.

Related: CNNMoney's Tech 30 index tracks the top stocks in tech

What's moving: Shares of CNNMoney Tech 30 component Microsoft (MSFT, Fortune 500)were down modestly after Citigroup downgraded the stock. Wall Street has become increasingly anxious over the tech giant's search for a successor.

Google (GOOG, Fortune 500), another member of the Tech 30, moved higher after the search engine announced Monday afternoon that it was buying connected device maker Nest Labs for $3.2 billion.

Also on Monday, Charter Communications (CHTR, Fortune 500) said it had formally proposed acquiring Time Warner Cable (TWC, Fortune 500). Time Warner Cable flatly rejected the offer. Shares of both companies were up in early trading.

European markets were mostly lower in morning trading, while Asian markets ended mixed.

First Published: January 14, 2014: 9:48 AM ET

Anda sedang membaca artikel tentang

Stocks rebound as investors cheer banks

Dengan url

http://kasiatbuatsehat.blogspot.com/2014/01/stocks-rebound-as-investors-cheer-banks.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

Stocks rebound as investors cheer banks

namun jangan lupa untuk meletakkan link

Stocks rebound as investors cheer banks

sebagai sumbernya