U.S. stocks surged on Wednesday, with all three major indexes registering their biggest daily percentage gains in more than two months, as lower-than-expected December core inflation data and solid earnings from major U.S. banks fueled a rally.
Market Snapshot
The Dow Jones Industrial Average rose 703.27 points, or 1.65%, to 43,221.55, the S&P 500 gained 107.00 points, or 1.83%, at 5,949.91 and the Nasdaq Composite advanced 466.84 points, or 2.45%, to 19,511.23.
Market Movers
JPMorgan Chase closed up 2% after the largest U.S. bank reported fourth-quarter earnings of $4.81 a share, beating analysts' estimates. Profit at the bank was $14 billion in the period, rising 50% from a year earlier and topping Wall Street expectations of $11.7 billion.
Shares of Wells Fargo jumped 6.7% after the San Francisco bank's fourth-quarter profit of $1.43 a share beat expectations for $1.35. Net interest income, a key metric for banks, fell 7% to $11.8 billion in the quarter from $12.8 billion a year earlier.
BlackRock rose 5.2% after the world's largest asset manager reported fourth-quarter adjusted earnings of $11.93 a share, beating analysts' estimates for $11.24. BlackRock's assets under management rose to $11.6 trillion in the period, up 15% from a year earlier.
Goldman Sachs rallied 6% after the investment bank posted fourth-quarter earnings of $11.95 a share, beating forecasts for $8.35. Profit in 2024 rose 68% to $14.28 billion, reflecting gains in investment banking and trading.
Citigroup jumped 6.5% after fourth-quarter earnings of $1.34 a share topped analysts' estimates for $1.22. Citigroup, one of the nation's largest banks, has been pursuing a turnaround strategy under CEO Jane Fraser, who has sold off some business and reorganized the company around five core business units. She said the company is making progress and entered 2025 with momentum.
Bank of New York Mellon jumped 8% after posting earnings that rose from a year earlier and topped analysts' estimates on rising fee and interest revenue.
Microsoft proclaimed Tuesday that 2025 would be the year for its business customers to become " quantum-ready" by preparing their organizations for the eventual technological leap. "We are right on the cusp of seeing quantum computers solve meaningful problems and capture new business value," Microsoft said in a blog post. The tech giant's statements helped boost shares of quantum-computing companies such as D-Wave Quantum, which jumped 22% on Wednesday, and Quantum Computing, which skyrocketed 55%.
Edison International rose 4.9%. Ladenburg Thalmann analysts upgraded shares of the utility company to Neutral from Sell. "With Edison trading at a 34% P/E discount we believe the stock reflects reasonable worst-case outcomes associated with the current California wildfires," the analysts wrote. Edison is the parent company of Southern California Electric.
Beacon Roofing Supply jumped 7.7% to $117.18 after building-products distributor QXO disclosed a proposal to buy Beacon Roofing for $124.25 a share in cash, or $11 billion. QXO originally submitted the proposal to acquire Beacon in November, which Beacon's board "unanimously rejected," according to a statement from the company. Shares of QXO fell 2.3%.
Applied Digital fell 2%. The data-center operator reported a second-quarter adjusted loss of 6 cents a share, narrower than analysts' estimates that called for a loss of 14 cents. Revenue of $63.9 million topped expectations. The stock closed 10% higher on Tuesday after announcing it would receive up to $5 billion from Macquarie Asset Management to help it build artificial-intelligence data centers.
Calavo Growers posted adjusted earnings of 5 cents a share in the fourth quarter, up from a loss of 2 cents a share a year earlier. Sales in the quarter jumped 20% to $170 million. Shares of the avocado and fruit grower were down 6.8%.
Market News
Apple in talks with Barclays, Synchrony to replace Goldman in credit card deal, sources say
Apple is in talks with Barclays to replace Goldman Sachs as the tech giant's credit card partner, said two sources familiar with the matter, as the Wall Street giant steps back from its consumer finance ambitions.
Credit card issuer Synchrony Financial is also in discussions with Apple about the card partnership, the first source said. Both sources declined to be identified discussing private talks.
Alphabet CEO to join tech leaders at Trump inauguration
Alphabet CEO Sundar Pichai is among the Big Tech leaders planning to attend U.S. President-elect Donald Trump's inauguration on Monday, a person familiar with the matter told Reuters on Wednesday.
Apple's Tim Cook will also be attending the event, Bloomberg News reported earlier in the day.
