Reuters Insider - Bank earnings relief lifts stocks

Wall Financial

15/01/2014 11:18

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 Source:             Thomson Reuters                                   
                                                                       
 Description:        Summary: JP Morgan, Wells Fargo beat forecasts;   
                     Retail sales rise; GM and Tesla see strong demand; 
                     Google's Nest deal lifts peers. Bobbi Rebell      
                     reports.                                          
 
 
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Transcript (May be auto-generated)

 US stocks doing a 180 on Tuesday - moving higher, one day after the S&P 500's 
biggest drop in two months. Behind the bounce, retail sales and earnings from 
JPMorgan and Wells Fargo. The Dow, the S&P 500, and the Nasdaq all posting solid
gains. A couple of big banks' results beating forecast, but with a catch. JP 
Morgan's profits actually fell, hurt by higher legal expenses - $20 billion in 
2013 - some linked to its settlement regarding its ties to Bernie Madoff. At 
Wells Fargo, profits jumped 11%, but mortgage financing was at its slowest in 
five years. Both stocks were up on the news. The big loser: Gamestop. It fell 
20%, wiping out almost a billion dollars in market value, after the company 
warned of lower profits, blaming sagging sales of older video games December 
retail sales came in ahead of expectations. The Commerce Department said that, 
excluding automobiles, gasoline, building materials and food services, the 
number increased by 0.7% last month, better than in November's 0.2%. BNP 
Paribas' Yelena Shulyateva: I think the strength is broad based, especially, in 
the control group, in the core retail sales reading. We did see some 
disappointment in auto sales but that was already seen in the unit order sales 
numbers that were released earlier in the month, So, I think overall, you know, 
its a really solid reading in retail sales, consistent with solid growth in 
personal consumption. That encouraging news also helped to boost stocks in 
Europe. The major indexes closing Tuesday's session higher. General Motors' 
global sales grew 4% in 2013 on strong demand in the world's two largest auto 
markets, China and the United States. Shares of GM just a bit higher. Tesla 
shares got a major jolt on what it's calling "reckless growth". The electric car
maker said deliveries of its model S Sedan blew past its forecasts by 20% in the
fourth quarter, at almost 6,900. Tesla plans to double its global sales and 
service locations, and is working "feverishly" on its Model X crossover vehicle.
Google's $3.2 billion deal for Nest Labs, a company that makes smart thermostats
and smoke alarms, lifting other companies in the consumer appliance space on 
Tuesday, like Echelon. Shares of the maker of the transceivers that go into the 
thermostats jumping 35%. Also Control4 stock soaring. They make home theaters 
and automation controllers. Shares of Google got a bump on the news as well