Wall Street: Goldman Sachs misfire prompts pause – Finance

The Dow rose 1.14%, the Nasdaq rose 0.14% and the broader S&P 500 lost 0.20%. Oanda’s Edward Moya explained in a note that “equity markets were hesitant to digest mixed results from banks”, a “disappointing” performance and a rise in bond yields.

A three-day weekend with a US holiday Monday also helped slow down the New York location. Goldman Sachs (-6.44% – $349.92) posted fourth-quarter profit well below expectations, marked by a meltdown in proceeds from debt issues and IPOs. The bank also tripled its provisions for bad debts compared to the same period last year.

Investors also noted that American casualty insurer Travelers (-4.60% to $185) missed forecasts, handicapped by the significant cost of damage caused by winter storm Elliott, which battered the US states later in the year. December The sky was clearly darker with the release of the day’s cap reading, which highlighted a sharper-than-expected fall in manufacturing activity in the New York area, down from -11.2 in December to -32.9 in January, the lowest level since August 2020. Bond market returns partly It rose on better-than-expected readings in China (GDP) and Germany (investor sentiment), further stimulating capital flows to Europe and emerging markets.

The entire sector is gearing up behind Goldman Sachs

The yield on the 10-year U.S. Treasury note rose to 3.54% from 3.50% on Friday. In the stock market, Goldman Sachs’ rival Morgan Stanley performed better (+5.91% to $97.08), with sales and earnings slightly exceeding analysts’ expectations. While investment banking suffered (-49% for revenue), asset management resisted and reserves remained moderate.

But Morgan Stanley, whether it’s JPMorgan Chase (-1.55%) or Bank of America (-2.02%) , couldn’t stop almost the entire sector from rallying behind Goldman Sachs. If the banks drag the Dow Jones and the S&P 500 into the red, the Nasdaq will benefit from several highly volatile stocks such as Tesla (+7.43%), graphics card maker Nvidia (+4.75%) or PayPal (+4.75%). saved his skin. +0.88%). “We’re seeing these struggling stocks recover while the Dow takes a breather, which is perfectly normal after a significant rally,” said Adam Sarhan of 50 Park Investments.

Thus, the Nasdaq was able to record its seventh consecutive positive session. “There’s a lot of headwinds in the market,” the manager noted, “and we’re only at the beginning of earnings season. It’s too early to judge the health of American companies, but we have a strong likelihood that results are in decline.”

Elsewhere on the value chart, Silvergate Capital (+0.98% – $13.33), the parent company of the so-called “cryptocurrency bank,” was sought after despite reporting a loss of $1.04 billion in the final quarter of the year. After the turbulence experienced by the market after the failure of the FTX platform in 2022. In addition, the values ​​​​of the sector put their noses out the window in line with bitcoin, which was more than 25% in ten days. Cryptocurrency mining specialists Marathon Digital Holdings (+8.98%) and Riot Platforms (+6.48%), trading platform Coinbase (+8.32%) rose.

The Dow rose 1.14%, the Nasdaq rose 0.14% and the broader S&P 500 lost 0.20%. Oanda’s Edward Moya noted in a note that “equity markets were wobbly amid digestion of mixed banking results” and a “disappointing” reading and rising bond yields. New York location speed. Goldman Sachs (-6.44% – $349.92) posted fourth-quarter profit well below expectations, marked by a meltdown in proceeds from debt issues and IPOs. The bank also tripled its provisions for bad debts compared to the same period last year. Investors also noted that US casualty insurer Travelers (-4.60% – $185) missed its target forecast, crippled by a significant cost of losses. Winter storm Elliott swept across the United States in late December. The sky was clearly darker with the release of the day’s cap reading, which highlighted a sharper-than-expected decline in manufacturing activity in the New York area, down from -11.2 in December to -32.9 in January, the lowest level since August 2020. China (GDP) and Germany (investor sentiment) rose on better-than-expected readings, which further stimulated capital flows to Europe and emerging markets. U.S. 10-year Treasuries rose 3.54%, compared with 3.50% on Friday. In the stock market, Goldman Sachs’ rival Morgan Stanley performed better (+5.91% to $97.08), with sales and earnings slightly exceeding analysts’ expectations. While investment banking suffered (-49% for revenue), asset management resisted and reserves remained moderate. But whether it’s Morgan Stanley, JPMorgan Chase (-1.55%) or Bank, almost the entire sector is Goldman Sachs. could not prevent him from falling behind. America (-2.02%). If the banks drag the Dow Jones and the S&P 500 into the red, the Nasdaq will benefit from several highly volatile stocks such as Tesla (+7.43%), graphics card maker Nvidia (+4.75%) or PayPal (+4.75%). saved his skin. +0.88%). Adam Sarhan of 50 Park Investments commented on the seventh consecutive positive session: “We see these stocks recovering from a bad situation, while the Dow is completely normal after a significant rally.” “There’s a lot of headwinds in the market,” the manager said, “and we’re only at the beginning of the earnings season. It’s too early to make judgments about the health of American companies, but we have a strong likelihood. Results are in a recession.” Elsewhere on the value chart, Silvergate Bank, nicknamed the “bank of cryptocurrencies,” was sought despite parent company Silvergate Capital (+0.98% – $13.33) reporting a loss of $1.04 billion. In the last quarter of 2022, after the market turmoil following the failure of the FTX platform. In addition, the values ​​of the sector have put their noses out the window in line with bitcoin, which is more than 25% in ten days. Cryptocurrency mining specialists Marathon Digital Holdings (+8.98%) and Riot Platforms (+6.48%), trading platform Coinbase (+8.32%) rose.