The major stock indexes traded along the flatline on Friday after some of the largest U.S. banks reported mixed quarterly results.
The Dow Jones Industrial Average rose just 18 points with Walgreens Boots Alliance outperforming and McDonald’s lagging. The S&P 500 slipped 0.03 percent as financials and telecom dropped at least 1 percent each. The Nasdaq Composite eked out a slight gain.
“This morning’s mixed, albeit modest, response to the earnings announcements from three of America’s biggest money center banks seemingly hints at an uneven upcoming reporting season,” said Jeremy Klein, chief market strategist at FBN Securities. ”However, if companies can maintain their extremely elevated profit forecasts for the next several quarters, then stocks should enjoy a stiff tailwind at their backs.“
J.P. Morgan Chase posted better-than-expected earnings and sales, as its trading revenue rose 13 percent in the second quarter on a year-over-year basis. Citigroup, meanwhile, posted a stronger-than-expected profit but its revenue for the quarter missed. J.P. Morgan Chase slipped 0.6 percent after rising as much as 0.64 percent, while Citigroup dropped more than 2.5 percent.