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Dow, S&P 500 close at fresh-record high, as JPMorgan buoys financials

Published 07/14/2016, 04:36 PM
Updated 07/14/2016, 04:41 PM
The Dow, NASDAQ and S&P 500 all rose by more than 0.5% on Thursday remaining in record territory
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Investing.com -- U.S. stocks rose sharply, remaining in record territory for the fourth consecutive session, on the back of stellar quarterly results from JPMorgan Chase & Co (NYSE:JPM), which kicked off the second quarter earnings season for major banks by topping analysts' earnings and revenues forecasts on Thursday.

JPMorgan, the world's largest bank, ended the second quarter with revenues of $25.2 billion, amid a stellar period among its Fixed Income division over the last three months. For the quarter, FICC revenue soared 35% to $3.96 billion, while sales from equities trading rose by 1.5% on the period, boosting the company's overall bottom line. Consequently, JPMorgan finished with adjusted EPS of 1.55, beating analysts' EPS forecasts of 1.46 by a wide margin.

The Dow Jones Industrial Average added 134.29 or 0.73% to 18,506.41, while the S&P 500 Composite index gained 11.32 or 0.53% to 2,163.75, each falling back slightly after hitting fresh all-time record highs. The Dow traded as high as 18,537.33 on Thursday, hitting a record intraday high for the third straight session. At the same time, the S&P 500 peaked at 2,168 during the session, marking the fourth consecutive day that the broader index reached an all-time intraday high. Both indices ended the day at all-time closing highs.

On the S&P 500, nine of 10 sectors closed in the green, as stocks in the Basic Materials, Financials and Technology industries led. Stocks in the Utility sector lagged, closing the day as the lone industry in the red. Meanwhile, the NASDAQ Composite index rose by 28.33 or 0.57% to 5,034.06, moving back into positive territory for the calendar year.

Goldman Sachs (NYSE:GS) gained 4.71 or 2.98% to 162.63, finishing Thursday's session as the top performer on the Dow, while JPMorgan added 1.19 or 1.88% to 64.35. While addressing the implications of last month's Brexit referendum on the bank's international outlook, JP Morgan CEO Jamie Dimon indicated that he expects the U.K.'s decision to leave the European Union to create "some uncertainty" for the immediate future. Dimon also urged political leaders on both sides to bring a sensible approach to a contentious negotiating period, which at the minimum will last two years.

The Dow's worst performer was UnitedHealth Group Incorporated (NYSE:UNH), which fell 0.61 or 0.43% to 140.87. Earlier this week, U.S. president Barack Obama published a paper in the Journal of the American Medical Association, outlining ways in which he believes the Affordable Care Act has improved the U.S. health care system. In the policy paper, Obama described possible actions to help create added competition in the Health Insurance Marketplace and stem rising prescription drug costs. In April, the nation's largest health care insurer departed from the majority of Obamacare state exchanges, citing a reluctance to subsidize markets it viewed as unsustainable.

The biggest gainer on the NASDAQ was Liberty Ventures (NASDAQ:LVNTA), which jumped 1.85 or 4.75% to 40.66. Liberty Interactive (NASDAQ:QVCA) finished just above American Airlines Group (NASDAQ:AAL), which surged 1.47 or 4.25% to 35.92. Stocks in the airlines industry received a boost on Thursday after Delta Air Lines' (NYSE:DAL) second quarter earnings soared by 4%, amid lower fuel costs on the period. The worst performer was Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH), which fell 1.19 or 2.71% to 42.79. Shares in the popular cruise line retreated from one-month highs, one day after NCL subsidiary Regent Seven Seas unveiled its latest ship in Monaco. The cruiser, which Regent has nicknamed "The Explorer," is being billed by the company as the most luxurious cruise ship "ever built."

Line Corp (NYSE:LN) shares soared 8.74 or 26.61% to 41.58 during its debut on Thursday as a public company. Line, a Japanese messaging app company, currently maintains a value of approximately $8.6 billion representing the highest IPO on Wall Street this year.

On the New York Stock Exchange, advancing issues outnumbered declining ones by a 1,708-1,305 margin.

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