Goldman Sachs Group Inc rose 3.4 per cent after it reported a massive jump in profit, capitalizing on record levels of global dealmaking activity. — Reuters picNEW YORK, April 15 — The S&P 500 dipped after hitting a record high for the fourth session in five and the Dow Industrials rose yesterday, as Wall Street banks kicked off earnings season with first-quarter numbers that lifted hopes for a strong corporate rebound.
Wells Fargo & Co jumped 5.5 per cent after the bank bounced back to a profit of almost US$5 billion, ahead of Wall Street estimates, as it reduced bad loan provisions and got a grip on costs tied to its sales practices scandal. Despite bumper trading and investment-banking revenue, lending by both JP Morgan and Wells Fargo fell from a year ago. Investors will be watching this metric carefully in the upcoming earnings of smaller banks, which are more focused on traditional lending and deposit-taking.
The S&P 500 energy sector was the largest gainer among the 11 sub-indexes, jumping 3.1 per cent as it tracked higher oil prices.