US stocks moved higher on Tuesday rebounding after declining on Monday. The Dow Industrials was the best performer of the major averages rising more than 2%. All sectors in the S&P 500 index were higher, led by Energy and Healthcare, financials were the laggers. JPMorgan Chase, Citi and Wells Fargo released earnings before the opening bell kicking off the earnings season. The upshot was the weak results in the retail bank were offset by very strong gains in trading. Wells Fargo does not have a broad trading operation which provided the backdrop of worse than expected results. The consumer price index came in stronger than expected.
JPMorgan Notchs up Strong Gains
JPMorgan Chase reported better than expected Q2 earnings and revenue that beat on the top and bottom line due to robust trading revenues. Trading revenue increased 79% to a record $9.7 billion. The company earned $4.69 billion or $1.38 per share beating expectations that the company would earn $1.04 per share. The company posted revenues fo $33 billion which also exceeded expectations of $30.3 billion.
CPI Rises to an 8-Year High
U.S. consumer prices increased to an eight-year high in June. The Labor Department reported on Tuesday that its consumer price index increased 0.6% last month, the biggest gain since August 2012, after easing 0.1% in May. The increase, which ended three straight months of declines, was driven by rises in the prices of gasoline and food. On a year over year basis, CPI climbed 0.6% after gaining 0.1% in May. Expectations had been for CPI to increase by 0.5% in June.
Core CPI which excludes food and energy rose 0.2% in June after slipping 0.1% in May. Core CPI had dropped for three consecutive months for the first time since the series started in 1957. On a year over year basis through June, the core CPI increased 1.2%, matching May’s gain.
This article was originally posted on FX Empire