NEW YORK: Stock markets on both sides of the Atlantic pushed higher on Friday following strong earnings from JPMorgan Chase and the launch of a new Disney streaming service that wowed Wall Street.
Wrong-footing financial sector watchers who had warned of a “not that great” earnings season for banks, JP Morgan reported higher first-quarter profits on Friday, pointing to a still-solid US economy reflected in more lending and better profit margins on loans, reports AFP.JPMorgan Chief Executive Jamie Dimon said a derailment of the US-China trade talks remained the biggest near-term risk but offered an upbeat appraisal of the US economy as a whole. “If you look at the American economy, the consumer’s in good shape, the balance sheet is in good shape, people are going back to the workforce.
Companies have plenty of capital and capital expenditure is still up year- over-year,” Dimon said. “Business confidence and consumer confidence are both rather high, not at all-time peaks, rather high.”
Shares of JPMorgan led most other large banks firmly higher. An exception was Wells Fargo, which also reported good earnings but slashed its forecast on a key lending benchmark tied closely to profitability.