The US stocks closed mostly down on Wednesday, 14 April 2021, dragging the S&P 500 and the Nasdaq composite index down, while the Dow Jones Industrial Average managed to eke out marginal gains, as investors digested the first major results of the profit-reporting season.At the close of trade, the Dow Jones Industrial Average index rose 53.62 points or 0.16% to 33,731. The S&P 500 was down 16.93 points or 0.41% to 4,125. The tech-heavy Nasdaq Composite Index fell 138.26 points or to 1% 13,858.
The new quarterly earnings season started out with shares in Goldman Sachs and Wells Fargo rose on bumper first-quarter profits. Goldman Sachs Group Inc reported a massive jump in first-quarter profit, aided by strong trading and investment banking revenue. Wells Fargo & Co bounced back to a profit of almost $5 billion in the first quarter, ahead of Wall Street estimates as it reduced bad loan provisions and got a grip on the costs tied to its sales practices scandal.
Shares in JP Morgan Chase fell despite the fact that the bank's profit jumped by almost 400% as it released more than $5 billion in reserves to cover coronavirus-driven loan defaults.
ECONOMIC NEWS: Fed's Beige Book Points To Moderate Pace Of Growth In US Economic Activity -The Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, highlighted improvement in a variety of areas, including consumer spending, auto sales and manufacturing activity. US economic activity accelerated to a moderate pace from late February to early April, according to the Federal Reserve's Beige Book. The Fed also noted reports on tourism were more upbeat, bolstered by a pickup in demand for leisure activities and travel.
The report also said job growth picked up over the reporting period, with most districts noting modest to moderate increases in employment. The Fed said job growth was generally strongest in manufacturing, construction, and leisure and hospitality, although hiring remained a widespread challenge.
The Beige Book said overall prices also accelerated slightly since the last report, with many districts reporting moderate price increases and some saying prices rose more robustly. Looking ahead, the Fed said outlooks were more optimistic than in the previous report, boosted in part by an acceleration in COVID-19 vaccinations.
COMMODITY NEWS: Global oil prices advanced by almost 5% on Wednesday in response to weekly US inventory data and a positive report from the International Energy Agency. Brent crude rose by US$2.91 or 4.6% to US$66.58 a barrel. And the US Nymex price gained US$2.97 or 4.9% to US$63.15 a barrel.
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