Stocks close higher on robust bank earnings, Disney helps propel Dow up triple digits

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U.S. stocks end higher Friday after a series of strong bank earnings, led by JPMorgan, boosted confidence in the U.S. economy while the Dow gained more than...

U.S. stocks closed higher Friday after a series of strong bank earnings, led by JPMorgan, boosted confidence in the U.S. economy while the Dow Jones Industrial Average rose nearly 270 points.

Strong bank earnings bolstered confidence in the underlying economy, and JPMorgan Chief Executive James Dimon further underscored this message, noting that, “Even amid some global geopolitical uncertainty, the U.S. economy continues to grow, employment and wages are going up, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong.”

The market also got a lift from trade data released by China that showed March exports rose 14.2% from a year earlier versus forecasts calling for a rise of 8.7% and after a sharp drop in February. That said, imports were flagging, reflecting soft domestic demand and the growth spurt in exports may not be sustained.

Positive bank earnings, especially from the nation’s largest bank, JPMorgan, indicate a “resilient U.S. economy,” Tom Kennedy, head trader and portfolio analyst at New England Investment & Retirement Group, told MarketWatch. “Strong external demand combined with domestic stimulus measures will go some way to supporting the world’s second largest economy which will come as a relief to everyone,” he said.

Shares of JPMorgan Chase JPM, +4.69% rose 4.7% for their best earnings day since the release of second quarter 2012 results.

 

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