US stocks struggled for direction at the open on Tuesday as a short but profitable week began for Wall Street companies.
S&P 500 Index (^ The Salafist Group for Preaching and Combat(up 0.1%, while the Dow Jones Industrial Average rose (^ DJI) fell by 50 points, or 0.2%. Nasdaq Technology Heavy Composite (^ ix) was just above the break-even point.
The remaining results from the financial sector are set to trickle in over the coming days, with all eyes focused on megabank Goldman Sachs (Goldman Sachs).p) and Morgan Stanley (Ms) Report the results before the bell the Tuesday after a A lackluster round of quarterly updates of their peers late last week.
Goldman Sachs Register A 69% larger than expected In Q4 earnings, where it was hit hard by a significant drop in deal-making revenue and higher provisions for loan losses. Shares fell 2.3 percent in early trading.
Meanwhile, Morgan Stanley A Lower than expected in profit. Like its Wall Street peers, the bank posted a decline in investment banking revenue, but higher net interest income and a record quarter for the wealth management business helped smooth out the overall numbers. Shares rose 4%.
Earnings reports from other sectors will also rise in the coming days, with numbers from Netflix (NFLX) on Thursday in focus. The update is likely to be a potential sign of things to come for the results for the technology sector, which are set to begin in earnest the following week.
The S&P 500 is expected to post a 3.9% annualized profit decline for the fourth quarter, according to Data from FactSet Research. This marks the first annual decline in earnings reported by the index since a 5.7% decline in the third quarter of 2020.
“We expect earnings to take center stage in the future, as earnings feedback ramps up, while inflation/FOMC feedback wanes,” Bank of America’s Savita Subramanian and Ohsung Kwon wrote in a note on Friday.
Global business leaders are Rally in the Davos MountainsSwitzerland, this week to World Economic Forum. A global recession, post-pandemic challenges, climate change, and the crisis in Eastern Europe are expected to be high on the agenda of the politicians, CEOs, and billionaires in attendance. Among those attending was European Central Bank President Christine Lagarde.
Next week will also be a busy Fedspeak, with several members of the US central bank scheduled to deliver remarks in speeches across the country in the coming days.
US Treasury yields rose Tuesday morning, with the benchmark 10-year note rising nearly 5 basis points, to above 3.55%.
Oil futures rose slightly. West Texas Intermediate (WTI) crude futures were trading around $80 a barrel as of 6:55 a.m. ET.
Tuesday’s moves came after a long weekend that saw the US stock and bond markets Closed Monday 16th JanuaryOn the occasion of Martin Luther King Jr. Day. On Friday, all three major averages They closed out their second winning week in a row.
The tech-savvy Nasdaq Composite Index posted a hefty 4.8% gain for the week, while the S&P 500 and Dow Jones Industrial Average posted their best performance since November, posting weekly gains of 2.7% and 2%, respectively.
Alexandra Semenova is a correspondent at Yahoo Finance. Follow her on Twitter @employee
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