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Stocks ended higher in a volatile session on Friday, Oct. 12 that saw major indexes open strong before giving up much of the day's gains in the middle of the day. Wall Street digested earnings from JPMorgan Chase & Co. (JPM) , Citigroup Inc. (C) and Wells Fargo & Co. (WFC) .
The Dow Jones Industrial Average rose 287 points, or 1.15%, to 25,340. For the week, the Dow was off more than 1,000 points, or 4.2%. The S&P 500 gained 1.42%, ending a six-day losing streak. The Nasdaq ended up 2.29%.
Declines on Thursday, Oct. 11, had pushed the Dow Jones Industrial Average's two-day losses to nearly 1,400 points and sent the Nasdaq into correction territory. The S&P 500 closed lower for a sixth straight day.
Investors have been rattled this week by higher bond yields, concerns over rising interest rates, trade tensions - particularly between the U.S. and China - and signs of slowing global economic growth. Yields on 10-year treasury notes were around 3.15% near the end of the day.
While a market rebound of some kind seemed likely Friday, volatility, as measured by the CBOE volatility index (VIX.X) , remains sharply higher than it has been in recent months. "The VIX tells us to expect some big moves over the coming days until a trend develops," said Bob Lang, founder of ExplosiveOptions.net and a contributor to TheStreet.com's Trifecta Stocks Newsletter. The S&P 500 is still below its 200-day moving average, "but if that is re-captured next week then there is a chance the uptrend can resume," Lang added. However, "This week's heavy volume selling is not to be ignored."
4 Ways to Beat Stock Market Panic, Pullbacks and Pandemonium Wall Street Blame Game Obscures Weak MarketJPMorgan Chase, the largest U.S. bank, said third-quarter profit rose 24% from a year earlier thanks to the Trump administration's tax cuts even as revenue in its juggernaut trading business slowed. Net income was $2.34 a share vs. estimates of $2.26.
JPMorgan CEO Jamie Dimon noted the increasing uncertainty for the banking business with the impact of Trump's $1.5 trillion of tax cuts expected to fade next year, widening U.S. government budget deficits that have ballooned the national debt past $21 trillion, rising U.S. interest rates and the president's trade conflicts with China, Europe and Japan.
"The U.S. and the global economy continue to show strength, despite increasing economic and geopolitical uncertainties, which at some point in the future may have negative effects on the economy," Dimon said.
Total revenue climbed by 5% to $27.8 billion, while expenses climbed by 7%, the bank said. The stock fell 0.8%.
JPMorgan Third-Quarter Profit Jumps on Tax Cuts as Trading Fees FallCitigroup earned $1.73 a share in the third quarter, topping Wall Street's expectations by 5 cents. Revenue of $18.39 billion came in just shy of estimates. The stock rose 2%.
Citigroup, Like JPMorgan, Posts Higher Profit on Tax CutsWells Fargo gained 1.3% on Friday. The bank's third-quarter adjusted profit was $1.16 a share, 3 cents below estimates.
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General Electric Co. (GE) fell 3.1% after management pushed back when it would report third-quarter results and analysts questioned the beleaguered industrial conglomerate's financial standing, suggesting an equity raise and a dividend cut.
General Electric Falls After Delaying Third-Quarter Results PNC Financial Services Group Inc. (PNC) reported third-quarter earnings of $2.82 a share, 10 cents ahead of forecasts. The stock declined 5.6%. Starbucks Corp. (SBUX) rose 2.9% on Friday after it said it would start buying back $5 billion in shares as part of a broader plan to return around $25 billion to investors just days after activist investorBill Ackman unveiled a stake in the world's biggest coffee chain. Starbucks Launches $5 Billion Buyback Days After Ackman Unveils StakeEarlier, Asian shares rebounded on Friday following a report that said Donald Trump and Chinese President Xi Jinping may meet at the Group of 20 summit in Argentina in late November.