Dow Jones closes in the red
Bad banking spoils investors’ mood
01/17/2023, 10:15 p.m
In addition to China’s sluggish economic growth, the quarterly results of large US banks are worrying stockbrokers. Goldman Sachs cuts a particularly bad figure. Accordingly, the course of the financial institution is going downhill. Meanwhile, the big winner is Tesla.
Disappointing quarterly results from major US banks and economic data from China have dampened Wall investors’ spirits. the Dow Jones Index the standard values were 1.14 percent lower at 33,911.22 points. The broader one S&P 500 fell by 0.2 percent to 3990.95 points. The index of the technology exchange Nasdaq advanced 0.14 percent to 11,095.11 jobs.
“Goldman Sachs’ quarterly results were even worse than widely expected,” said Opimas analyst Octavio Marenzi. “Morgan Stanley’s, on the other hand, were broadly in line with forecasts.” According to economist Peter Cardillo from investment advisor Spartan Capital Securites, the slowdown in economic growth in China and profit-taking after a rally at the beginning of the year also contributed to the depressed mood.
The now extreme inversion of the three-month and two-year Treasury yield curves – a market indicator of a looming recession – meanwhile suggested, according to broker CMC Markets’ Konstantin Oldenburger, that the market expects the Fed’s rate hikes to take a hit and other central banks will soon be followed by rate cuts.
“Investors are expecting a quick slowdown in inflation and a possible recession. So sentiment on the economy remains bearish.” Now the rest of the reporting season must show how companies see the future. Netflix’s financial report, for example, is expected on Thursday as a first mood test for the technology industry.
Papers of Chinese companies lose
Oil prices were boosted by forecasts by oil association Opec+ that demand from China should pick up again this year after an initial drop. The North Sea variety Brent rose by a good one percent to $86.77 per barrel (159 liters). The light US variety STI rose 1.6 percent to $81.14.
The shares of Goldman Sachs lost 6.45 percent to $349.86. those of MorganStanley rose, however, by 5.84 percent to 97.01 dollars – the highest level in almost a year. At the same time, the disappointing gross domestic product in China weighed on the prices of US-listed Chinese companies. The papers from Alibaba, JD.comand baidu lost up to six percent. Meanwhile, the latest sales figures from China helped Tesla– Stock to the top of the Nasdaq. The electric car maker’s volatile stock gained 7.42 percent to $131.48 – its highest level in four weeks.
Price cuts on Tesla’s top-selling models pushed China sales to 12,654 vehicles between Jan. 9 and Jan. 15, according to a report by China Merchants International Bank. That represents a jump of 76 percent over the result for the same period last year. A rising demand in Europe gave the US solar industry suppliers enphase Boost. The stock jumped 2.13 percent to $251.06. Installers of Enphase products in the Netherlands have recently seen an increase in orders for residential solar power systems, the company said. He did not initially give specific figures.