Upbeat Quarterly Results of JPMorgan Chase Boosted US Equities
US Stocks Bounced Back with High Gains, Helped by Oil Prices
Sector performances
All the component sectors of the SPDR S&P 500 ETF (SPY) ended in green territory after JPMorgan Chase’s (JPM) quarterly results turned out better than expected. One of the biggest financial banks, JPMorgan Chase (JPM), yielded upbeat earnings results thanks to cost cutting and small legal bills. The bank reported a 10.2% rise in the fourth quarter profits where the profits amounted to $5.4 billion. It also maintained an optimistic view of its business in 2016.
This confidence about the US economy as per JPM’s point of view lifted the US market on Thursday, January 14, 2016. Stocks of JPM rose 1.5% on the day. The graph above presents the performances of the component sectors of the SPY ETF as of January 14.
Let’s look at the key stocks of the day.
Top stocks
Stocks at the top of SPY on January 14 were Williams Companies (WMB), Freeport-McMoRan (FCX), and ONEOK (OKE). These stocks rose 34.4%, 12.3%, and 8.6%, respectively, on the day.
Metals had mixed results on Thursday when precious metals like gold and silver fell while the industrial metals like copper and steel took off. The miners’ ETFs of copper and steel also advanced on January 14. Therefore, we saw the copper producer giant, Freeport-McMoRan (FCX), march upward on the day.
Bottom stocks
Stocks at the bottom of SPY on January 14 were Best Buy (BBY), Consol Energy (CNX), and GameStop (GME). These stocks yielded -9.7%, -7.1%, and -5.1%, respectively, on the day.
Best Buy (BBY) and GameStop (GME) are into computer and electronics retail. BBY reported a fall in holiday sales for the third time in four years. The slump in the industry and the weak demand for mobile phones were cited as the reasons behind the fall in sales. As a result, the fall in BBY seemed to impact GME too.
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