Wall Street Stocks Rise as Bank Earnings Beat Expectations

In the premarket trading session, several major Wall Street banks saw their stocks rise after reporting better-than-expected earnings. JPMorgan Chase led the way with a 2.7% increase, due to higher interest rates and strong bond trading from the investment bank side. JPMorgan reported an adjusted $4.37 per share and $42.4 billion in revenue, surpassing analysts’ estimates of $4 a share and $38.96 billion.

Wells Fargo also saw a positive response from investors, with shares climbing nearly 4%. The bank beat earnings expectations due to a 29% increase in interest income. Wells Fargo reported an adjusted $1.25 per share and $20.53 billion in revenue, exceeding analysts’ forecasts of $1.16 per share and $20.12 billion.

Citigroup experienced a similar boost, with its stock rising almost 2%. The company reported an adjusted $1.33 per share and $19.44 billion in revenue, beating analysts’ predictions of $1.30 per share and $19.29 billion.

However, not all companies fared as well. BlackRock saw its shares slip roughly 1% after reporting its quarterly results. Despite posting adjusted earnings of $9.28 per share and $4.46 billion in revenue, BlackRock fell short of analysts’ expectations of $8.45 per share and $4.45 billion.

Coinbase, the cryptocurrency exchange, experienced a slight pullback in premarket trading, with shares declining by 1.2%. The dip followed a previous rally prompted by a New York judge ruling that the XRP token may not classify as a security.

On a positive note, Plug Power, a battery stock, saw a nearly 6% increase after receiving an upgrade from Northland Capital Markets.

Microsoft also experienced a boost, with its stock rising 1.8% after being upgraded to a buy from neutral by UBS. The Wall Street firm cited the recent weakness in the stock as an opportunity for investors and raised the price target to $400, implying more than 16% upside.

AT&T, on the other hand, saw its shares slip 1.3% after being downgraded to neutral by JPMorgan due to increased competition in its wireless and cable segments.

In the healthcare sector, UnitedHealth Group saw a 3.4% increase in its stock after reporting strong earnings. The company exceeded expectations with adjusted earnings of $6.14 per share and $92.9 billion in revenue, surpassing analysts’ estimates of $5.99 and $91 billion.

Alcoa, an aluminum supplier, experienced a decline of 2.3% after being downgraded to neutral by JPMorgan, citing weaker near-term metal prices.

Overall, the better-than-expected earnings from major Wall Street banks contributed to a rise in stock prices, providing a positive start to the trading day.