Good Evening! U.S. markets finished higher on Friday after important quarterly results from banking giants.
The S&P 500 rose 0.40%, while the Dow Jones gained 0.33%. The Nasdaq Composite was up 0.71%, finishing higher for the sixth day in a row, the longest stretch since 2021. The Nasdaq and S&P 500 both had their best weeks in approximately two months.
IPO TIME
The Messi Store, the apparel company of Argentine soccer icon Lionel Messi, had its U.S. market debut on Friday, with the stock soaring more than 200% before sliding back below its opening price at the market close.
MGO Global Inc. (MGOL), the operator of The Messi Store, Argentine soccer star Lionel Messi’s apparel business, sold just 1.5 million shares to the public, despite the fact that trading was suspended many times throughout the morning session as investors rushed to Messi’s brand.
The reasoning? Messi’s name has most certainly influenced the stock. Less than a month ago, the 35-year-old led Argentina to its first World Cup title in 36 years and was given the tournament’s Golden Ball.
However… it is uncertain if Messi’s popularity will aid the company’s financial recovery. In their S-1 filing, MGO reported falling annual sales for the first three quarters of 2022. After earning $557,641 in the first nine months of 2021, revenue dropped to $336,103 in the first nine months of 2022.
4 IN 1!
The CEOs of the nation’s four largest lenders — JPMorgan Chase & Co., Bank of America Corp., Wells Fargo & Co., and Citigroup Inc. — took turns in conference calls Friday, describing customers who are depleting savings, piling up credit card debt, and struggling to make payments in an increasing number of cases.
However, since many people are still making payments, the rising loan amounts benefit lenders. And, so far, most customers have “plenty of cushions left,” according to Bank of America Chief Executive Officer Brian Moynihan.
Let’s get into some of the numbers! During the fourth quarter, the four banks put aside $6.18 billion in provisions for bad loans, reversing a year earlier when the group discharged its last stockpiles. In all, the lenders increased their reserves by $2.8 billion during the quarter.
Total expenses at the four major US banks increased 5.4% year on year to $298.7 billion, a $15 billion rise. According to Bloomberg statistics, this was the largest increase in almost a decade.