United States

S&P 500 rises with growth stocks; JPMorgan a drag

2 minute read
  • JPMorgan falls, BlackRock gains after earnings
  • Fed minutes hint at tapering from November
  • U.S. consumer prices post solid gain in September

NEW YORK, Oct 13 (Reuters) - The S&P 500 ended higher on Wednesday, led by gains in shares of big growth names like Amazon.com and Microsoft, but JPMorgan shares fell and weighed on the index even though the bank beat earnings expectations.

The S&P 500 briefly added to gains following the release of minutes from the September Federal Reserve policy meeting.

U.S. central bankers signaled they could start reducing crisis-era support for the economy in mid-November, though they remained divided over how much of a threat high inflation poses and how soon they may need to raise interest rates, the minutes showed. read more

Earlier, a Labor Department report showed consumer prices increased solidly in September, further strengthening the case for a Fed interest-rate hike. read more

Shares of JPMorgan Chase & Co (JPM.N) fell and were among the biggest drags on the Dow and S&P 500 even though its third-quarter earnings beat expectations, helped by global dealmaking boom and release of more loan loss reserves. read more

The day's corporate results kicked off third-quarter earnings for S&P 500 companies.

A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in New York City, New York, U.S., July 19, 2021. REUTERS/Andrew Kelly

"My hope is that as we work out way through earnings season that the forward-looking guidance will be good enough that we'll close the year higher. But right now the market is in a show-me phase," said Jim Awad, senior managing director at Clearstead Advisors LLC in New York.

Mega-caps growth names including Amazon.com Inc (AMZN.O), Google-parent Alphabet (GOOGL.O) and Microsoft Corp (MSFT.O) all rose.

According to preliminary data, the S&P 500 (.SPX) gained 14.20 points, or 0.33%, to end at 4,364.85 points, while the Nasdaq Composite (.IXIC) gained 105.71 points, or 0.73%, to 14,571.64. The Dow Jones Industrial Average (.DJI) rose 4.35 points, or 0.01%, to 34,382.69.

BlackRock Inc (BLK.N) also gained after the world's largest money manager beat quarterly profit estimates as an improving economy helped boost its assets under management, driving up fee income. read more

Bank of America (BAC.N), Citigroup (C.N), Wells Fargo (WFC.N) and Morgan Stanley (MS.N) will report results on Thursday, while Goldman Sachs (GS.N) is due to report on Friday.

Analysts expect corporate America to report strong profit growth in the third quarter but worries have been mounting over how supply chain problems, labor shortages and higher energy prices might affect businesses emerging from the pandemic.

Among other stocks, Apple Inc (AAPL.O) dipped after a report said the iPhone marker was planning to cut production of its iPhone 13. read more

Additional reporting by Devik Jain and Bansari Mayur Kamdar in Bengaluru; Editing by Arun Koyyur and David Gregorio

Our Standards: The Thomson Reuters Trust Principles.

More from Reuters