17 Apr 2009

Wall Street gains on bank profit announcement

10:37 am on 17 April 2009

US shares rose on better-than-expected profits from banking giant JPMorgan Chase and data showing a drop in new US jobless claims.

The Standard & Poor's 500 Index gained 13.24 points, or 1.55%, to 865.30. The Dow Jones industrial average rose 95.81 points, or 1.19%, to 8,125.43.

The Nasdaq Composite Index jumped 43.64 points, or 2.68%, to 1,670.44.

Market action came after JPMorgan Chase announced a net profit of $US2.1 billion in the first quarter of 2009.

The figure was slightly down from 2008 figures for the same period, but was better than most market analysts had predicted and suggested a potential recovery in the troubled banking sector.

The Labour Department said new US jobless claims fell by 8% to 610,000 in the past week, a third consecutive decline suggesting some easing of pressure in the weak labour market.