Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Dow Makes Strong Start to Week as Banks, Tech Shine

Stock Markets May 23, 2022 22:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters

By Yasin Ebrahim -- The Dow climbed Monday, buoyed by a JPMorgan-led jump in banks and rally in big tech as the dip-buying seen late-Friday continued into the start of the week.  

The Dow Jones Industrial Average gained 2%, or 615 points, the Nasdaq was up 1.56%, and the S&P 500 rose 1.9%

JPMorgan Chase (NYSE:JPM) racked up more than 6% after the bank lifted its guidance on annual performance, forecasting net interest income to exceed $56 billion in 2022, above the prior forecast in January of $50 billion.

Banking stocks have been under pressure recently as fears about a recession offset expectations for higher interest rates as the Federal Reserve is set to step up the pace of monetary policy tightening.

But JPMorgan, while acknowledging that the risk of a “future adverse outcome” has increased, downplayed the risk of recession, pointing to a U.S. economy that  “remains fundamentally strong."

The positive outlook from JPMorgan sparked a rally in several banks including Citigroup (NYSE:C), Wells Fargo & Company (NYSE:WFC) and Bank of America (NYSE:BAC).

Energy stocks, meanwhile, rose more than 2% as oil prices wavered between gains and losses despite growing expectations for a boost in energy demand as Shanghai prepares to reopen after a two-month Covid-19 lockdown.  

Schlumberger NV (NYSE:SLB), APA (NASDAQ:APA), and Coterra Energy (NYSE:CTRA) were up sharply on the day, with the latter rising by more than 5%.  

Technology, which has led the recent market rout, continued to build on momentum seen late Friday, with Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOGL) leading the gains.

Airbnb was marginally higher, shrugging off a CNBC report, citing unnamed sources, that the company is set to shut down its domestic business in China by this summer.

In deal news, VMware (NYSE:VMW) soared more than 24% on reports that the software company is in talks advanced talks to be acquired by chipmaker Broadcom (NASDAQ:AVGO) for about $140 a share. 

If the deal does go through, it could, however, attract regulatory scrutiny despite a lack of business overlap between the firms.

“Our one concern is the potential that regulators block the deal. While we don't see the business overlap that traditionally has created regulatory scrutiny, we would argue such overlap didn't exist with AVGO's proposed QCOM acquisition, nor QCOM's aborted efforts to buy NXP [Semiconductors],” Wedbush said.

Dow Makes Strong Start to Week as Banks, Tech Shine

Related Articles

Trump Media Company in Federal Probe of SPAC Deal
Trump Media Company in Federal Probe of SPAC Deal By - Jul 01, 2022

By Yasin Ebrahim -- Donald Trump’s media company was subpoenaed by a federal grand jury earlier this week relating to a criminal probe, Digital World Acquisition...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email