Shares of banks and other financial institutions rose as traders bet earnings will not be as bad as previously feared.
JPMorgan Chase shares rose. The largest U.S. bank by assets is set to report earnings at the end of the week. “The big banks will kickoff earnings season and expectations are for the largest loan losses since the pandemic,” said Edward Moya, senior market analyst at foreign-exchange brokerage Oanda Group, in a note to clients.
“Considering how … stocks have rushed higher, it will be difficult for this earnings season to deliver strong enough results for fresh highs.”
Icahn Enterprises surged after the investment firm received a reprieve following a short-selling raid orchestrated by rival activist firm Hindenburg Research. The firm’s founder and largest shareholder, Carl Icahn, struck a deal with lenders to untie his personal loans from the firm, addressing a key Hindenburg line of criticism, the danger of Icahn Enterprises being forced to sell out of its investment positions if banks called in personal loans to Mr. Icahn.
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