Volatile S&P 500 and Nasdaq Soar 3% Following BofA Earnings

Barry Adams
17 Oct, 2022
New York City

Stocks on Wall Street jumped after Bank of America reported better-than-expected earnings and bond yields rose. 

After a week of wild swings the S&P 500 declined 1.5% and the Nasdaq Composite dropped 3.1% and bond yields hovered above 4%. 

In Monday's trading, major averages advanced and the yield on Treasuries rose as investors digested better-than-expected earnings from Bank of America. 

The S&P 500 index jumped 2.65% or 94.88 to 3,677.95 and the Nasdaq Composite index soared 3.4% or 354.41  to 10,675.80.

Natural gas futures fell to a three-month low and below $6 on falling demand and rising supply, according to the Energy Information Agency report. 

U.S. utilities increased natural gas storage by 125 billion cubic feet, an increase over 100 billion cubic feet for the fourth week in a row. 

The natural gas price fell after the demand for power decreased following Hurricane Ian and a decline in LNG exports. 

Crude oil fell 17 cents to $85.48 and natural gas declined 49 cents to $5.95 a thermal unit. 

The Yield on 2-year Treasury notes increased to 4.45%, 10-year bonds edged higher to 4,01% and the 30-year bonds rose to 4.03%. 

 

U.S. Movers

Bank of America Corp jumped 6.5% to $33.76 after the bank reported better-than-expected third quarter sales and earnings.

Revenue, net of interest income, in the third quarter increased 8% to $24.5 billion from $22.8 billion a year ago. 

Net income soared to $7.1 billion or 81 cents from $6.2 billion or 73 cents a share.  

"Our U.S. consumer  clients remained resilient with strong, although slower  growing, spending levels and still maintained elevated  deposit amounts," said chief executive officer Brian Moynihan.  

Continental Resources, Inc gained 8.6% to $74.08 after founder and chairman Harold Hamm and his family agreed to acquire the remaining shares in the oil producer for $74.28 a share.   

Credit Suisse increased4.5% to $4.57 after the company settled a lawsuit for $475 million stemming from the sale of mortgage backed securities dating as back as 2008 with New Jersey State. 

The company is also looking to sell a stake to a group of investors according to reports on the weekend. 

Dish Network Corp jumped 7.7% to $13.95 and rebounded from a loss of more than 7% last week after Conx Corp was in talks to acquire Boost Mobile from the company.  

Fox Corp declined 9.4% to $28.58 and News Corp gained 3.8% to $16.20 after founder Rupert Murdoch formed a special committee to merge the two companies together. 

Roblox Corp soared 20.7% to $42.88 after the online gaming company said average daily active users in September jumped 23% to 57.8 million 

Estimated booking increased between 11% and 15% to between $212 million and $219 million from a year ago and estimated revenues increased between -2% and +3% to between $171 million and $180 million. 

Splunk Inc increased 5.8% to $74.25 after the activist investor Starboard Value is said to hold approximately 5% stake in the company with a plan to boost shareholder value. 

 

Europe Stock Movers 

Credit Suisse AG gained 2.6% to 4.53 Swiss francs and the troubled investment bank reached a financial settlement with the New Jersey State regulator related to residential mortgage securities dating back to 2008. 

ASOS Plc plunged 8.4% to 485 pence after the U.K.-based online fashion retailer confirmed that the company is in negotiations with lenders in revising credit facility terms.   

Energy complex companies rose after crude oil prices rose more than 1% and the dollar edged down. 

BP Plc, Eni SpA, Repsol SA, TotalEnergies SE and Shell Plc increased between 1% and 2.5%. 

Hargreaves Lansdown plunged as much as 8% before recovering to close down 3.5% to 787.95 pence and the investment platform is facing multi-million pound lawsuits from thousands of investors over the fallen equity income fund managed by Neil Woodford. 

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