-Market Rallies Higher As Bank Earnings Open Strong-
As earnings season kicks off, the market jumped higher after several major banks have already reported better-than-expected results, a sign that the Federal Reserve’s rate cut isn’t having as big of a negative impact on financial companies as Wall Street feared.
BlackRock’s third-quarter earnings also beat expectations, by 19 cents a share, with the company’s assets under management also rising 8% to just under $7 trillion, although year-over-year profits fell slightly.
Citigroup’s third-quarter earnings also came in higher than expected, with both profit and revenue just beating out Wall Street estimates, thanks to strong trading results that made up for weaker lending margins.
Key background: With the Federal Reserve again cutting interest rates last month —which weighs on bank deposits and lending, financial company earnings were expected to drop 2.6% this quarter, according to FactSet.
View full story at Forbes.com
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