Stocks Poised for Records, Despite Weakness in Bank Shares
13 Oktober 2017 - 5:26PM
Dow Jones News
By Riva Gold and Lucy Craymer
-- World stocks on track for fresh record
-- Pound continues to strengthen
-- Nikkei above 21000
Stocks climbed toward fresh records Friday, even as shares of
big banks struggled.
Recent economic data releases have helped lift stocks, as they
signal a synchronized pickup in global growth, encouraging equity
investors.
The Dow Jones Industrial Average rose 50 points, or 0.2%, to
22891 in recent trading, on track to finish the week up 0.5% and
notch a fresh record. The S&P 500 added 0.2%, and the Nasdaq
Composite gained 0.4%.
Despite the broader gains, U.S. bank stocks were set to decline
for the third day in row. Major lenders started reporting their
third-quarter earnings this week, and while they have mostly beat
expectations, their stocks dropped after the results.
Wells Fargo slid 3.1% as the bank reported weaker-than-expected
third-quarter revenue, while shares of Bank of America added 0.7%
after the bank reported its quarterly profit had risen 13% from a
year earlier. On Thursday, shares of J.P. Morgan Chase and
Citigroup also fell after their respective earnings results.
Financial stocks in the S&P 500 were on track to end the week
down 0.8%, one of the worst performing sectors in the broader
index.
The KBW Nasdaq Bank Index fell 0.2% Friday, on track for a 1.6%
weekly drop following three straight sessions of declines.
Also weighing on banks was a drop in U.S. government bond
yields. The decline came after U.S. core inflation rose by less
than expected, according to data from the Labor Department. Yields
on 10-year Treasury notes edged down to 2.296% from 2.323%.
Following the report the U.S. dollar fell, too, with the WSJ
Dollar Index, which measures the U.S. currency against 16 others,
fell 0.3%.
Stocks around the world flirted with records Friday, as money
flowed into global stock funds. Flows into global equity funds
during the week ending Oct. 11 hit a record, according to fund
tracker EPFR Global.
The MSCI World equity benchmark of large and mid-cap stocks was
set to hit another all-time high amid gains in Asian and European
stocks. The Stoxx Europe 600 edged up 0.3%, following gains in
Japan and Australia.
Germany's DAX index was flat near all-time highs. London's
export-heavy FTSE 100 fell 0.2% from a record close, bucking the
global trend of gains, as the pound continued its ascent against
the dollar.
In Asian trading Friday, stocks closed mostly up. Korea's Kospi,
however, struggled to log a third-straight record close, edging
down less than 0.1%.
Traders came back from the midday break in Japan in an upbeat
mood, with the Nikkei climbing more after sprinting to heights last
seen in 1996. The benchmark finished up 1%.
New Zealand's stock benchmark logged a record-extending
ninth-straight gain to new highs and Australian shares rose
0.3%.
Marina Force contributed to this article.
Write to Riva Gold at riva.gold@wsj.com and Lucy Craymer at
Lucy.Craymer@wsj.com
(END) Dow Jones Newswires
October 13, 2017 11:11 ET (15:11 GMT)
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