The Dow Jones Industrial Average soared by over 300 points or 1.2% on Tuesday morning after a number of companies reported better-than-expected financial results.
The S&P 500 rose by 32 points or 1.09%, while the Nasdaq Composite gained 97 points or 1.21%.
U.S. markets were primarily lifted by upbeat bank financial results. Notably, JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC) were leading the banking sector as they both witnessed their shares rise by 4%.
JPMorgan Chase reported third quarter earnings of USD 2.68 per share on revenues of USD 30.1 Billion. Analysts expected earnings of USD 2.45 per share on revenue of USD 28.5 Billion.
Meanwhile, Wells Fargo (NYSE: WFC) reported earnings of USD 1.07 per share on revenue of USD 22.01 Billion. Analysts expected earnings of USD 1.15 per share on revenue of USD 21.19 Billion.
Citigroup (NYSE: C) and Goldman Sachs (NYSE: GS) also reported their quarterly financial results during pre-market hours on Tuesday. Citi topped analysts’ estimates, sending shares 2% higher. However, Goldman Sachs missed its earnings estimates, sending shares lower by 0.25% on midday Tuesday.
“It’s a better time to be a traditional, consumer-facing bank than more of an institutional or trading bank,” Stephen Biggar, director of financial institution research at Argus Research told MarketWatch. “Underwriting and financial advisory were weak spots [in the third quarter], but the consumer is by and large steady-as-she-goes,” he added.
Investors also focused on UnitedHealth’s (NYSE: UNH) unexpected quarterly beat, which sent shares surging by 7%. For the quarter, UnitedHealth reported earnings of USD 3.88 per share on revenue of USD 60.4 Billion. Analysts anticipated earnings of USD 3.75 per share on revenue of USD 59.8 Billion. UnitedHealth was able to surpass estimates primarily due to its double-digit growth in its Optum segment.