- The Dow was rising Wednesday after earnings from two U.S. banks
- Goldman Sachs earned $6.04 a share in fourth quarter
- Bank of America stock up 7.2%
On Wednesday, The Dow Jones Industrial Average rose on the back of earnings reports from two of the biggest U.S. banks. Stronger-than-expected figures from Goldman Sachs Group Inc and Bank of America Corp. offset worries caused by the major defeat for UK Prime Minister Theresa May and her proposed Brexit deal.
Goldman Sachs outstripped the consensus forecast of $4.30 per share earnings to hit $6.04 a share in the fourth quarter. The bank’s stock price rose by 9.6% as revenue was also robust at $8.08 billion.
Bank of America beat both the top and bottom line Wall Street estimates as figures revealed earnings of 70 cents a share in the fourth quarter of 2018, along with an increase in total deposits of 2% to reach $1.34 trillion. On the back of this news, the bank’s shares saw a 7.2% hike.
Both of these movements helped the Dow Jones Industrial Average rise by 142 points (0.6%). The S&P 500 saw an increase of 0.22%, and the Nasdaq rose 0.15%.
The news from across the Atlantic that the UK government had suffered the worst defeat in the history of the House of Commons over the proposed Brexit agreement with the EU was offset by the two bank reports.
A vote of no confidence in the government could lead to a general election, although this is thought to be unlikely.
In other international developments, Asian stock markets were unsettled by reported comments from U.S. Trade Representative Robert Lighthizer via Republican Sen. Chuck Grassley. The remarks pertained to rumors that trade talks between the U.S. and China might not be going as well as hoped.