Stocks end higher; loans remain strong – Boston Herald
Wall Street capped a week of losses with a broad rally for stocks on Friday, as investors hailed strong corporate earnings and an encouraging report on consumer sentiment and inflation expectations.
A survey conducted in July by the University of Michigan showed that inflation expectations remained stable or improved, as did general consumer sentiment. The report was welcomed following several government reports this week that showed consumer prices remained extremely hot in June, as well as wholesale prices for businesses.
The report also bodes well for investors looking for signs that the Federal Reserve may eventually ease its aggressive inflation-fighting policy.
The S&P 500 rose 1.9%, ending a five-day losing streak. Still, the gains weren’t enough to pull the benchmark out of red for the week. The Dow Jones Industrial Average rose 2.1% and the Nasdaq 1.8%.
Mixed results for Wells Fargo
Wells Fargo, the nation’s largest mortgage lender, saw revenue and profit decline in the second quarter as rising interest rates pushed people out of the housing market.
The San Francisco bank earned $3.1 billion in the period, or 74 cents per share, below guidance of 80 cents per share.
However, investors seemed less concerned about the bank’s turnover and more impressed with an 8% increase in loan balances. Wells saw growth in personal and business loans and new credit card products.
Wells Fargo shares climbed 7% in afternoon trading.