Carvana Leaps 40.2% After Debt Deal

Bank profit reports extend Wall Street rally
By Newser Editors and Wire Services
Posted Jul 19, 2023 3:41 PM CDT
Bank Profit Reports Extend Wall Street Rally
People pass the front of the New York Stock Exchange in New York, March 21, 2023.   (AP Photo/Peter Morgan, File)

Wall Street closed modestly higher following profit reports from a spate of banks and other big US companies. The S&P 500 rose 0.2% Wednesday after its seventh gain in the last eight days. The Dow added 109 points, or 0.3%, and the Nasdaq edged up less than 0.1%. Insurance provider Elevance Health helped lead the market. It rose 4.4% after it reported stronger profit and revenue for the spring than analysts expected. Several banks also rallied after reporting a rise in customer deposits. The S&P 500 is up nearly 19% for the year so far and at its highest level in more than 15 months, the AP reports.

Western Alliance Bancorp bounced from an early loss to a gain of 7.8% after reporting weaker profit for the latest quarter than analysts expected. It also said customers added $3.5 billion in deposits from April through June. US Bancorp rose 6.5% after reporting weaker profit than expected but slightly stronger revenue. It also said its deposits grew 3.2% from the start of the year. M&T Bank gained 2.5% after reporting stronger profit than expected and higher deposits. Investment bank Goldman Sachs added 1% after it fell short of profit expectations for the latest quarter but topped forecasts for revenue.

One of Wall Street's biggest winners was Carvana, which jumped 40.2%. The used-car dealer agreed with its lenders to reduce its debt by more than $1.2 billion. It also reported a milder net loss for the latest quarter than analysts expected. On the losing side of Wall Street was Omnicom Group. The marketing and communications company fell 10.3% after investors focused on its falling short of analysts' expectations for revenue growth during the spring. "Probably the best way to sum up this market at the moment is, 'can't stop, won't stop,'" said JJ Kinahan, CEO of IG North America. (More stock market stories.)

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