Major Banks Lead Gains as New York Stock Exchange Rises

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Major Banks Lead Gains as New York Stock Exchange Rises
Photo: Jeff Chiu/AP/TT

Two of three broad Wall Street indexes closed up on Wednesday. The banks Morgan Stanley and Bank of America led the increase.

Broad S&P 500 rose 0,4 percent, Nasdaq's technology-heavy composite index plus 0,7 percent and Dow Jones industrial index closed unchanged.

Among today's winners, reporting investment bank Morgan Stanley is noted, whose share rose 4,7 percent. This after having crushed market expectations. The profit, 2,8 dollars per share, meant the largest margin to market expectations in five years and also resulted in a profit increase of 45 percent compared to the previous year.

Also, competitor Bank of America reported better figures than expected and the share rose 4,6 percent, the largest increase since May.

An indication that the economy remains strong as, together with the fact that the central bank Fed is likely to lower interest rates again at the end of the month, increases investors' optimism, says Sam Stovall, investment strategist at CFRA Research, to CNBC about the banks' strong reports.

Another winner is the entertainment company Warner Bros Discovery, which rose 2,6 percent on information in New York Post about acquisitions. According to the newspaper, Paramount Skydance with CEO David Ellison, son of Oracle's founder Larry Ellison, is on its way to make a bid.

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By TTEnglish edition by Sweden Herald, adapted for our readers

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