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The Tech Revolution looks Good for The Banking Sector in America

The Tech Revolution looks Good for The Banking Sector in America

The Companies that beat it out to be the knight in the shining armour this Tuesday are the Parent company of Google, Alphabet and Microsoft. They closed out at a higher than expected earnings at the end of the day and topped the charts.

Along with the front runners, we also have the S&P 500 and the Dow Jones closing out at a gain for a few days in a row and indicating outstanding performance by the stocks in these indices that continue to grow with time.

However, Nasdaq, the tech index, closed a few points below expected due to the dip in Facebook shares by 3.9%. The primary reason behind this is the dip in revenue after they reported their quarterly earnings on Monday. However, they did beat the expected profits but didn’t exceed the revenue expectations.

Moving on to the banking sector, where we see a massive improvement as the number of loans given out increases significantly, the credit quality on these loans is much better. Mike Mayo of the Wells Fargo Bank claims that Banks have exceeded expectations after the third-quarter results.

This should result in an upward re-rating of Banking stocks since the credit quality will only get better, not just for a quarter or two, but for another two years, at least.

So far, earnings have been reported by around 30% of the S&P 500. 82% of the companies that have released quarterly reports have surpassed earnings projections, while 80% have surpassed sales predictions. The major averages have reached fresh highs thanks to solid outcomes.

Coca-Cola, McDonald’s, Bristol-Myers, Boeing, General Motors, and Harley-Davidson are reporting profits before the market starts on Wednesday. After the market closes, Ford, eBay, and Yum China will release quarterly reports.

Apart from that, the crypto markets haven’t shown great movement except for DogeCoin, aka Elon Musk’s favourite, dipping by 2%. Solana, along with XRP, has shown tremendous growth of 3% in the last 24 hours.

No significant hits or misses today; watch out for what happens post the ringing bell on Wednesday.

Written by Editor

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