US STOCKS-S&P 500, Dow hit record highs on bank earnings boost

Reuters

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    * S&P 500, Dow set for fourth straight week of gains
    * Morgan Stanley wraps up earnings from big banks
    * Strong U.S. data boosts economic recovery hopes
    * Indexes: Dow up 0.30%, S&P up 0.19%, Nasdaq off 0.06%

 (Updates to early afternoon)
    By Shivani Kumaresan
    April 16 (Reuters) - The S&P 500 and the Dow hit record
highs on Friday after Morgan Stanley wrapped up bumper quarterly
earnings reports from big U.S. banks, while optimism about a
solid economic rebound put the main indexes on course for weekly
gains.
    Nine of the 11 S&P indexes were higher, with only the
information technology  .SPLRCT  and the energy  .SPNY  indexes
edging lower after outperforming in the previous session.
    The benchmark S&P 500 and the blue-chip Dow are on course
for their fourth straight week of gains, while the
technology-heavy Nasdaq  .IXIC  is less than a percent below its
own all-time closing high on the back of upbeat economic data
and a solid start to the first-quarter corporate earnings
season.
    "You are just seeing blow out earnings from the banks and
all the data pointing to a very strong reopening," said Thomas
Hayes, chairman of Great Hill Capital.
    "So it's a day for (the so-called) 'reopening trade' with
strong financials."
    Morgan Stanley  MS.N  reported a 150% jump in quarterly
profit on Friday, joining JPMorgan Chase & Co  JPM.N , Goldman
Sachs Group Inc  GS.N  and Bank of America  BAC.N  in
reinforcing hopes of a swift economic recovery.
    Still, the investment bank's shares fell 2.9% as it also
disclosed an almost $1 billion loss from the collapse of private
fund Archegos.  urn:newsml:reuters.com:*:nL4N2M92XL
    Shares of JPMorgan, Goldman Sachs, Bank of America, and
Wells Fargo & Co  WFC.N  rose between 0.7% and 2.4%, while the
S&P financials index  .SPSY  was up 0.4% after hitting a record
high earlier in the day.
    By 12:04 p.m. ET, the Dow Jones Industrial Average  .DJI 
was up 101.65 points, or 0.30%, at 34,137.64, the S&P 500  .SPX 
was up 8.02 points, or 0.19%, at 4,178.44, and the Nasdaq
Composite  .IXIC  was down 7.80 points, or 0.06%, at 14,030.96.
    The Federal Reserve's pledge to keep interest rates low
despite higher inflation has also revived demand for richly
valued technology stocks, although bond yields edged higher
again on Friday after hitting multi-week lows in the previous
session.  US/ 
    Tech behemoths Apple Inc  AAPL.O , Amazon.com Inc  AMZN.O ,
Tesla Inc  TSLA.O  and Microsoft Corp  MSFT.O , which led Wall
Street's recovery last year from the coronavirus-fueled crash,
slipped between 0.2% and 1.5%.
    The information technology index  .SPLRCT  pulled back from
an all-time high hit in early trading.
    "The biggest risk that could cause a (stocks) sell off is
the development of COVID-19 variants, a slowdown in the
reopening and persistent inflation," Hayes said.
    Bitcoin-related stocks including Riot Blockchain  RIOT.O 
and Marathon Digital  MARA.O  slumped about 4% after Turkey
banned the use of cryptocurrencies and crypto assets to purchase
goods and services.  urn:newsml:reuters.com:*:nL1N2M90AO
    Advancing issues outnumbered decliners 1.15-to-1 on the
NYSE, while declining issues outnumbered advancers 1.53-to-1 on
the Nasdaq.
    The S&P index recorded 136 new 52-week highs and no new low,
while the Nasdaq recorded 129 new highs and 91 new lows.

 (Reporting by Shivani Kumaresan in Bengaluru; Editing by Arun
Koyyur and Anil D'Silva)
 ((Shivani.Kumaresan@thomsonreuters.com; +1 646 223 8780;))

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