U.S. stock indices traded higher on Thursday amid strong earnings from the nation’s leading banks including Bank of America, Citigroup and Wells Fargo, which all reported better-than-expected earnings results.
Shares of Bank of America rose 1.25% on Thursday after reporting a 58% increase in third-quarter profits, to $7.7 billion, or 85 cents a share. Revenue was up 12% to $22.87 billion.
The bank benefited from lower-than-expected losses on loans as well as record advisory and asset management fees.
Citigroup reported a 48% surge in profits, driven by an increase in trading revenue for fixed income and equity markets. The bank reported earnings of $2.15 per share and $17.15 billion in revenue.
Despite outperforming on earnings, shares of Citigroup dropped 1.65% on Thursday morning.
The shares of Wells Fargo were down 1.67%, despite its profits jumping nearly 60% in the third quarter.
The investment bank reported earnings per share of $1.22, topping estimates of 99 cents per share. The profits were boosted by a release of $1.65 billion from loan loss reserves. Revenue was at $18.83 billion, vs the estimated $18.35 billion.
JP Morgan Chase reported its earnings results on Wednesday, boosted by better-than-expected loan losses. The bank beat analysts’ estimates of $1.5 billion in profits. Earnings per share were at $3.74 per share, vs the expected $3 per share.
The S&P 500 traded up 1.47% to 4,423.55 on Tuesday, The Dow Jones Industrial average gained 1.40% and Nasdaq increased 1.54% amid hopes that the the Federal Reserve will be able to manage a smooth unwinding on its bond-buying program.