Financials Up After BofA, Deutsche Bank Earnings -- Financials Roundup

Shares of banks and other financial institutions rose after strong earnings from some major players. Shares of Bank of America, the second largest U.S. bank by assets, rose, coming within 5% of all-time highs, after it reported rising interest rates, strong loan demand and a massive tax cut boosted its second-quarter profit. Rivals JPMorgan Chase and Citigroup, who have a similar assortment of businesses, also rose. "We are quite encouraged to see technology and financials as two of the main drivers of growth," said Ryan Detrick, senior investment strategist at brokerage LPL Financial. "Given these are two of the most important groups, this bodes well for the overall economy." Deutsche Bank shares surged from near multi-decade lows after the troubled German bank's quarterly earnings topped Wall Street targets. Among other setbacks, Deutsche Bank's German unit was singled out by the Federal Reserve in recent months because of its exposure to risk. Shares of BlackRock, the largest global money manager by assets, ticked down after a drastic reduction in second-quarter inflows, a sign of investors' skittishness after months of trade tensions and market volatility. Barclays Chief Executive Jes Staley is considering expansion of the British bank's online U.S. retail bank and credit-card operations as competition in investment banking intensifies, The Wall Street Journal reported.

-Rob Curran, [e-mail]

(END) Dow Jones Newswires

July 16, 2018 16:28 ET (20:28 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.