How do shares of Bank of America and other banks behave in the market?
Futures on indexes of American exchanges are increasingly visible in the stock market. At the beginning of last week, the S&P 500 increased by 1%. The trend can be traced from the end of summer and the indexes are gradually approaching record highs. Experts name the reasons for this situation on the stock exchange as the trade conflict between the United States and China, global processes of economic slowdown. Another factor that makes investors wait for serious trading operations is the new strategy of purchasing the Fed’s assets. The other day begins a period of reports, which will clarify the situation and set a course for further action. There are already the first results – the Bank of America shares have gained in price, a similar picture for some other institutions.
The reporting season has shown that the financial institutions’ business has gone up. Bank JPMorgan Chase, which has the largest capitalization, rose by 3%. Despite the fact that Goldman Sachs profits were lower than expected, the stock price rose, which significantly improved the company’s position.
The period was successful for the leader of the health and life insurance market – UnitedHealth Corporation. Its shares increased in price by 8.16%, which aroused interest among many investors. In addition, the company presented a positive profit forecast for 2020, in which it plans to break the record for revenue.
The income is higher than analysts’ expectations of the Bank of America, but with a slight decline, which is quite natural due to the impact of global processes. Net profit decreased to 5.27 billion dollars, one share costs 56 cents. Last year the bank’s income was $6.7 billion, and the share price was 66 cents. The result was higher than predicted, which was at 51 cents per security. The price of Bank of America shares has risen by 2.2%.
Industrial companies do not have such optimistic forecasts. Producers of steel products lost their prices: United States Steel – 2%, Abbott – 2.4%, Adobe – 2.6%.
Even before the beginning of the season FactSet analysts have published their forecasts, where the profit volume of the companies included in the S&P 500 index will decrease by 4.6%. Usually experts understate, but the third quarter was a real test for industrialists. The industry was affected by the trade conflict between the U.S. and China, and the severity of the consequences of these contradictions will manifest itself over time.
Investors and market experts are waiting for reports from major corporations from the technology sector. The other day IBM and Netflix are to present their results, and then the picture will become clearer.