Marketbites: Stocks Surge on back of Bank of America Earnings
Portfolio Manager Commentary:
The major indices started off the week with a strong rally to follow up on last Thursday’s optimism. The Nasdaq gained the most, finishing up 3.43%, the S&P followed right behind advancing 2.65%, and the Dow also performed well, rising 1.86%. Key earnings reports and a rebound in oversold tech names were able to fuel the rally. The 10-year treasury note finished at 4.02%, a new multi year high.
Bank of America released their 3rd quarter earnings which roughly came in line with other big banks. All of them have been putting extra money aside in case of a recession. Bank of America beat out earnings expectations with revenue of 81 cents per share compared to the expected 78 cents per share. Also, net interest income rose 24% to $13.8 billion due to more revenue from lending money as rates rose.
Fox Corp. shares fell more than 9% following news that Rupert Murdoch has proposed to recombine the two wings of his media empire, Fox and News Corp.
Chart of the Day:
Small-cap stocks are bouncing back and are on pace to outperform the S&P 500 this year for the first time since 2016. The strong U.S. dollar is boosting their run as its strength looms over large multinational companies.