Optimism in the accounting season
Dow with longest winning streak in years
07/19/2023 11:06 p.m
The Dow Jones Industrial posted gains for the eighth straight trading day. It’s his longest rally route in years. Investors are looking forward to the numbers from Tesla and Netflix.
Amid a flood of corporate balance sheets, US stock markets rose again on Wednesday. The Dow Jones Index closed 0.3 percent higher at 35,061 points, the eighth trading day in a row. This is his longest winning streak in more than three years. The broader one S&P 500 also gained 0.3 percent to 4,565 jobs, while the technology exchange index Nasdaq hardly changed at 14,370 points. Netflix and Tesla only presented figures after the stock market closed – two tech megacaps that are largely responsible for the broad price rally on Wall Street.
In the shares of Goldman Sachs it went on a rollercoaster ride after the bank’s profits collapsed sharply in the quarter due to write-downs in the real estate sector and sluggish business in investment banking. In the end, the papers closed almost one percent tighter. The quarterly reports already submitted by other major banks have turned out to be pretty good, Goldman are probably the first where things aren’t going so smoothly, said Dennis Dick, market structure analyst at Triple D Trading.
Bank of America, JPMorgan as well as Wells Fargo had benefited from the higher interest rates in terms of their results. However, investors were somewhat forgiving when Goldman CEO David Solomon said the environment felt better after the tough quarter. The regional banks Citizens Financial and M&T bank topped Wall Street estimates for earnings – shares gained 6.4 and 2.5 percent, respectively. “Banks have certainly set a positive tone for the start of the second quarter earnings season,” said Mike Loewengart, portfolio head at Morgan Stanley Global Investment Office. “Whether this translates into similar results for the remainder of the earnings season remains to be seen.”
For the investors in the telecom companies AT&T and Verizon meanwhile, fears of financial risks associated with the use of lead-sheathed cables receded. The shares gained 8.5 and 5.3 percent respectively. AT&T announced that lead wire made up less than 10 percent of its cable network. More than two-thirds of these are either buried or cabled, followed by aerial cables and a very small portion that runs under water, it said. Previously, there were media reports that the cables may have contaminated neighboring soil and sources of drinking water.
The share certificates offered a fireworks display Carvana, which increased by 40 percent. The troubled used-car dealership has reached an agreement with most of its bondholders to reduce its outstanding debt by more than $1 billion.