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US stocks rise after strong JPMorgan earnings

Thursday, July 14, 2016 - 22:17
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[NEW YORK] Strong earnings from JPMorgan Chase boosted US stocks early Thursday as equity markets shrugged off the Bank of England's decision not to cut interest rates.

Dow member JPMorgan Chase jumped 2.2 per cent after second quarter earnings and revenues topped expectations.

Bank executives described US growth as solid and said it was too soon to know how the British vote to leave the European Union would affect its operations.

That helped other bank shares. Citigroup and Wells Fargo, which report earnings on Friday, rose 2.8 per cent and 1.3 per cent, respectively.

About 30 minutes into trade, the Dow Jones Industrial Average was at 18,503.10, up 0.7 per cent.

The broad-based S&P 500 climbed 0.6 per cent to 2,164.55, while the tech-rich Nasdaq Composite Index advanced 0.5 per cent to 5,031.38.

Both the Dow and S&P 500 closed at records Wednesday.

Briefing.com analyst Patrick O'Hare said the market continues to be in a "party mood" on expectations of more stimulus from central banks.

O'Hare cited reports of aggressive stimulus planned in Japan and noted that the Bank of England Thursday signaled an interest rate cut was possible in August even as it kept rates unchanged.

"The BOE, then, did nothing to take away the stimulus punch bowl from which the market has been drowning its sorrows, raising the roof, and pretty much partying like it's 1999," he said.

Delta Air Lines gained 1.7 per cent as it reported a 4.1 per cent rise in second-quarter net income to US$1.5 billion and said it would trim some capacity on its US flights to Britain after the Brexit vote.

Rival carriers United Continental and American Airlines rose 2.0 per cent and 3.0 per cent, respectively.

Restaurant chain Yum Brands jumped 4.4 per cent as it lifted its full-year operating profit growth forecast to at least 14 per cent from 12 per cent previously.

AFP