Shares of banks and other financial institutions rose after solid earnings reports from the nation's largest banks.
JPMorgan Chase, Bank of America, Citigroup and Wells Fargo -- the four largest U.S. banks by assets under management -- all reported brisk fourth-quarter earnings growth even as they set billions of dollars aside to cover the risk of recession.
JPMorgan set aside $1.4 billion in the fourth quarter, while Citigroup's reserves grew by $640 million. Wells Fargo and Bank of America each set aside about $400 million. For the fourth quarter, higher interest rates lifted lending profits for the banks. JPMorgan Chief Executive Jamie Dimon said an economic slowdown was not yet evident in banking activity but the ripple effects of inflation and the war in Ukraine were still on their way.
"The equity market currently prices a soft landing ... but S&P 500 earnings revisions point to a hard landing," said strategists at brokerage Goldman Sachs Group, warning that the 2022 experience in markets should remind investors to hope for the best but position their portfolios for the worst.
Investors are making higher offers for FTX customer accounts trapped in bankruptcy after lawyers for the failed cryptocurrency exchange said they have located $5 billion in cash and other liquid assets.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-13-23 1732ET
