Bank of America Noah recorded profits by 20 percent in the second quarter, while Morgan Stanley’s profits fell by 18 percent during the same period, largely due to the decline in trading revenues on Wall Street.
Financial stocks have come under pressure this year after the banking crisis in the United States, due to rising interest rates and customers withdrawing deposits.
Lockheed Martin also raised its annual profit forecast and forecasts for demand and sales for military equipment, and shares rose 1.4 percent.
On the data side, reports on consumer and producer prices in June showed that inflation was declining faster than expected, raising hopes that the Fed will reach the end of its round of rate hikes sooner rather than later.
The Fed is widely expected to raise interest rates by another quarter percentage point later this month.
US retail sales data for June came in slightly weaker than expected, rising 1.49 percent in June compared to expectations for a 1.6 percent increase from a year ago.
For the month, retail sales rose 0.2 percent compared to expectations for a 0.5 percent gain.
US industrial production also fell by 0.5 percent in June compared to the previous month.
Market movements
The Dow Jones Industrial Average rose 289.00 points, or 0.84 percent, to 34,874.35 points by 14:45 GMT.
The Standard & Poor’s 500 index rose by 13.62 points, or 0.31 percent, to 4,535.92 points, while the Nasdaq Composite Index fell by 19.32 points, or 0.13 percent, to 14,226.85 points.
Bank of America shares rose 4.13 percent, while Morgan Stanley rose 6.6 percent.
Shares of PNC Financial Services Group rose 1.68 percent after it cut its forecast for net interest income this year.
Brokerage firm Charles Schwab posted second-quarter earnings and better-than-expected revenue, with the stock up more than 12 percent.
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