Bank stocks get a lift from better-than-feared Q3 earnings reports
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Bank stocks surged on Friday after three large banks kicked off Q3 earnings season with better-than-expected bottom lines. JPMorgan Chase’s (NYSE:JPM) results featured stronger-than-expected net interest income, leading the Wall Street giant to boost its full-year guidance.
The KBW Nasdaq Bank Index climbed 3.4% in late morning trading, outpacing the S&P 500’s 0.6% increase. The KBW Nasdaq Regional Bank Index jumped 3.5%.
The first three banks that posted Q3 results received positive responses from investors — JPMorgan Chase (JPM) +5.1%, Wells Fargo (NYSE:WFC) +5.8%, BNY (NYSE:BK) +1.8%.
That sets the stage for the rest of the sector, and investors are encouraged. Bank of America (BAC) stock climbed 5.2%, Citigroup (C) gained 3.9%, Morgan Stanley (MS) rose 3.0%, and Goldman Sachs (GS) advanced +2.6%.
Custodial banks: State Street (STT), +1.4%, and Northern Trust (NTRS) +2.6%.
Among regional banks, New York Community Banccorp (NYCB) +6.1%, US Bancorp (USB) +3.5%, M&T Bank (MTB) +3.5%, Comerica (CMA) +3.5%, Western Alliance Bancorporation (WAL)+3.6%, Zions Bancorporation (ZION) +3.8%, and Citizens Financial Group (CFG) +3.3% saw the strongest gains.
Axos Financial (AX), a digital bank, jumped 6.8%.