US banks rise as top lenders surpass Q3 profit estimates

Synchrony Financial

16/10/2024 18:19

** U.S. banking index tracking  .BKX  large-cap stocks up
~1.7% after Morgan Stanley's  MS.N  Q3 results 
    ** MS last up ~6.6% after hitting record high earlier in the
session as its Q3 profit beat estimates on a rebound in
dealmaking and debt underwriting  
    ** "The stars are aligning for the business. Fees from debt
deals, equity underwriting and advising on mergers and takeovers
are building up," says Dan Coatsworth, investment analyst at AJ
Bell 
    ** JPMorgan Chase  JPM.N , Citigroup  C.N , Goldman Sachs
 GS.N , Bank of America  BAC.N  and Wells Fargo  WFC.N  all beat
Street expectations for Q3 profit, helped by a recovery in
investment banking
    ** "It's quite a change in fortunes for Morgan Stanley and
its peers given we've been through a couple of years where many
big corporations and investors held off dealmaking and
undertaking IPOs because of the high interest rate environment,"
Coatsworth adds 
    ** Regional lenders also rally on Wednesday, with KBW
Regional Banking index  .KRX  gaining ~1.8% 
    ** Consumer lender Synchrony Financial  SYF.N  last up ~4%
on raising its forecast for annual profit, while U.S. Bancorp
 USB.N  jumps ~4.6% on Q3 profit beat 
    ** A raft of regional lenders set to report quarterly
results later this week, closing the reporting season for the
banking sector

 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com))