Profits in Wall Street While the Dow Jones is Still under 10,000 points
17 Oct
This week in wall Street, the Dow Jones has been affected by the results of Bank of America and General Electric,that haven’t been as convincing as the investors of Wall Street hoped, they bit to collect profits this Friday, furthermore, the data on the consumer’s trust, has been too weak again. However, this has been the week of the banks and the Dow Jones ended rising by 1%.
So, at the end of Friday, The Dow Jones of Industry fell by 0.8% to 9990 points, the S&P500 fell by 0.81% to 1087 points, and the technological Nasdaq fell by 0.76% to 2157 points.
In the weekly balance of Wall Street, after passing the though quest of the banking system results flock from the last 5 days we had green results and profits. The Dow Jones rose this week by 1,35, the S&P500 rose by 1′5% and also the Nasdaq rose, by 0′8%.
After the frenetic optimism in Wall Street delivered by the profits of JPMorgan this Wednesday, and after the rally of Thursday, the investors opted to take a break and collect profits, leaving the Dow Jones under 10000 points.
Today, the reason to collect profits has been given by 2 of the 3 main blue chips of Wall Street. Bank of America, the biggest bank of Wall Street, recorded loses by $1bn in the third quarter, these results suppose a loss of $0.26 per share, more than the $0.24 expected by the analysts assessed Bloomberg. Furthermore the entity added $11,7bn in provisions.
The growth of defaulting motivated this Cash flow to their provisions because the defaulting tax continues growing. The shares of Bank of America fell by 4% and they are transmitting to all the industry, JPMorgan fell by 1,5%, Citigroup lost a 3% and Goldman Sachs fell by 2%.
On the other hand, one of the thermometers of Wall Street and the Dow Jones, General Electric had its profits ripped by 44% in the last quarter, most of this loss was due to its financial filial GE capital, that plumbed profits by 87%. The shares of GE have been the heaviest on the Dow Jones this Friday, and when Wall street closed, they had been fallen by 3%.
In the technological of Wall Street, two important companies have also released their balances to Wall Street and the market, AMD and IBM. The first one, also member of the Dow Jones, lost a 5% but these results were the expected by Wall Street. IBM had a 13% more of profits although its revenue fell by 7%
Google also released profits to be followed in Wall Street, with a 21% of profits, supposing $5,89 per share, more than the expected $5,49, the shares of Google rose by 3%.
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