STORY: U.S. stocks closed higher on Tuesday, with the Dow on track for its longest streak of daily gains in more than two years, thanks in part to strong bank earnings.
The Dow added just over one percent, while the S&P 500 and the Nasdaq each gained roughly three-quarters of a percent.
Morgan Stanley shares jumped six-and-a-half percent – their biggest one-day percentage climb since Nov. 9, 2020 – after topping expectations as growth in the bank’s wealth management business offset lower trading revenue.
Bank of America gained nearly four-and-a-half percent after its profit beat expectations by earning more from customers’ loan payments, while investment banking and trading fared better than expected.
And shares of Charles Schwab jumped twelve-and-a-half percent – the S&P’s biggest mover – after the brokerage posted a smaller-than-expected drop in quarterly profit.
The Dow registered its seventh-straight session of gains, its longest streak since March 2021, and closed at its highest level since April 2022.
“No one expected a market to do so well year-to-date…”
Robert Schein, Chief Investment Officer at Blanke Schein Wealth Management, says that while stocks have soared, investors should prepare for a pullback next quarter.
“We’re cautiously optimistic, but at the same time seasonally the third quarter has always given you an opportunity – so get some dry powder ready [FLASH] You can hang out in the treasury market, but definitely be able to take advantage of what the market will give us – we believe we could see the market pull back over the next quarter or two.”
Data released early on Tuesday showed retail sales rose less than expected in June on a decline in building materials and service station receipts. And production at domestic factories unexpectedly fell during the month, but rebounded in the second quarter as automobile output accelerated.
