US stocks jump as JPMorgan gives banks a big boost

US stocks are climbing today afternoon. Banks, which have struggled this year, are making the biggest gains after JPMorgan Chase posted quarterly results that weren't as bad as analysts expected. Industrial companies are rising on signs of strength in China's economy.
The Dow Jones industrial average jumped 175 points, or 1 percent, to 17,896 as of 3:18 pm Eastern time. The Standard & Poor's 500 index rose 18 points, or 1 percent, to 2,079. The Nasdaq composite index advanced 68 points, or 1.4 per cent, to 4,940. After big gains yesterday, stocks are at their highest level of 2016.
JPMorgan, the largest bank in the US, said its first-quarter profit fell because of weak results in its investment banking business. Its profit and revenue were bigger than analysts expected, however, and the stock rose USD 2.64, or 4.5 per cent, to USD 61.92.

Several other major banks will report earnings this week. Bank of America picked up 50 cents, or 3.7 per cent, to USD 13.77 and Wells Fargo rose USD 1.20, or 2.5 per cent, to USD 48.97. Citigroup jumped USD 2.41, or 5.8 per cent, to USD 44.32.
Julian Emanuel, US equities and derivatives strategist for UBS, said it didn't take much to send banks, the worst-performing sector in the market this year, higher.
"Bank stocks have been so beaten up that any good news, either on better credit conditions driven by higher energy prices or news on cost-cutting, is likely to underpin those stocks," he said.

Banks have slumped this year because investors are worried they will take big losses on loans to energy companies, and because interest rates in the US are still low. That reduces' the profits banks can make on loans.

Railroad operator CSX gained USD 1.07, or 4.3 per cent, to USD 26.06. The company's profit fell as demand for coal got weaker and CSX hauled less freight, but expenses fell, partly because fuel costs dropped. CSX said it plans to cut more spending.
Other railroad stocks surged. Union Pacific added USD 2.04, or 2.6 per cent, to USD 81.68 and Norfolk Southern rose USD 2.63, or 3.3 per cent, to USD 81.3.

Consumer goods makers took some of the biggest losses. The Commerce Department said retail sales fell a little in March, although the Federal Reserve said overall consumer spending grew a bit in February and March. Americans have been cautious about their spending this year even though gas prices are low and jobs are growing. Tobacco company Reynolds American lost USD 2.31, or 4.5 per cent, to USD 48.95 and Altria fell USD 2.12, or 3.3 per cent, to USD 61.71.