Share to Twitter Share to Linkedin Topline The stock market plunged on Tuesday after Goldman Sachs reported disappointing quarterly earnings—continuing a trend of lackluster bank results, while surging government bond yields hit two-year highs. Key Facts The Dow Jones Industrial Average fell 1.5%, around 550 points, while the S&P 500 lost 1.8% and the tech-heavy Nasdaq Composite 2.6%. Shares of Goldman Sachs plunged around 7% after the bank reported disappointing fourth-quarter earnings: Profits came in below expectations, falling 13% from a year earlier. Similar to rivals JPMorgan Chase and Citigroup, Goldman also reported rising expenses , which hurt their bottom line, with the bank’s operating expenses surging 23% due to “significantly higher” pay for employees. Government bond yields, meanwhile, continued to post strong gains as the two-year yield broke above 1% for the first time since February 2020, right before the pandemic sent … [Read more...] about Stock Market Selloff Continues As Rates Surge, Goldman Sachs Falls 7%
The stock market has had a tumultuous week, and the volatility looked like it would continue on Friday. As of 8:30 a.m. ET, Dow Jones Industrial Average ( DJINDICES:^DJI ) futures were down 205 points to 35,784. S&P 500 ( SNPINDEX:^GSPC ) futures had lost 30 points to 4,622, and Nasdaq Composite ( NASDAQINDEX:^IXIC ) futures were off 136 points to 15,355. One of the groups of companies that often report their earnings first each quarter is the banking industry , and Friday brought a couple of key reports that helped investors get some clarity on how the industry is likely to do in 2022. JPMorgan Chase ( NYSE:JPM ) and Wells Fargo ( NYSE:WFC ) both gave their latest financial updates, sending their stocks moving in different directions. Let's take a closer look at what the two big banks had to say to see what their respective differences are signaling for how the various parts of the financial sector have been performing lately. Image source: … [Read more...] about Big Bank Earnings Send Wall Street Lower Friday
The holiday weekend didn't leave Wall Street investors in a particularly good mood, as a sustained push higher in long-term interest rates continued to weigh on the stock market. As of shortly before 9 a.m. ET, Dow Jones Industrial Average ( DJINDICES:^DJI ) futures were down 278 points to 35,518. S&P 500 ( SNPINDEX:^GSPC ) futures had lost 42 points to 4,612, and Nasdaq Composite ( NASDAQINDEX:^IXIC ) futures were off 220 points to 15,376. Another round of earnings from bank stocks came out to begin the new week, and investors weren't entirely pleased with the trends that they're seeing. Industry giant Goldman Sachs ( NYSE:GS ) saw a substantial pullback after releasing its results, but its decline was small compared to those that another bank with close ties to the cryptocurrency sector suffered Tuesday morning. Below, you'll learn more about Goldman's results and then find out which bank stock is down even more sharply. Image source: Getty Images. … [Read more...] about Goldman Drags on Stocks, but Here’s the Bank That’s Truly Getting Crushed
Wall Street was in a foul mood on Tuesday, and major market benchmarks finished the day with substantial losses. The Dow Jones Industrial Average ( DJINDICES:^DJI ) was the best performer on the day despite finishing down more than 500 points, while the Nasdaq Composite ( NASDAQINDEX:^IXIC ) had much larger losses on a percentage basis that pushed that index into 10% correction territory. The S&P 500 ( SNPINDEX:^GSPC ) dropped nearly 2%. Index Daily Percentage Change (Decline) Daily Point Change Dow (1.51%) (543) S&P 500 (1.84%) (86) Nasdaq (2.60%) (387) Data source: Yahoo! Finance. Long-term investors weren't all that shocked to see some popular meme stocks take big hits in the downward-moving market. Yet what was more surprising was the fact that global consumer-products giant Unilever ( NYSE:UL ) saw its stock fall even more than AMC Entertainment Holdings ( NYSE:AMC ) … [Read more...] about This Defensive Consumer Stock Fell More Than 2 Meme Stock Darlings Today
2022 has gotten off to an ugly start for the stock market, but Wednesday morning, market participants seemed ready to claw back at least a little bit of the ground major market benchmarks have lost in the first few weeks of the year. As of just before 8:30 a.m. ET, Dow Jones Industrial Average ( DJINDICES:^DJI ) futures were up 77 points to 35,336. S&P 500 ( SNPINDEX:^GSPC ) futures had gained 14 points to 4,585, while Nasdaq Composite ( NASDAQINDEX:^IXIC ) futures had risen 59 points to 15,265. We've seen a big round of bank stock earnings over the past week, and a couple more industry leaders gave investors their latest results. However, it was news from SoFi Technologies ( NASDAQ:SOFI ) that produced much bigger stock price moves. Read on to see how Bank of America ( NYSE:BAC ) and U.S. Bancorp ( NYSE:USB ) fared at the end of 2021, and then find out why SoFi's on the move higher. Image source: Getty Images. Bank of America makes a … [Read more...] about More Banks Report Mixed Results, but This Fintech Disruptor’s Stock Soared Wednesday
Share to Twitter Share to Linkedin The January Effect is a calendrical hypothesis that suggests stock prices tend to rise more in January than any other month. While it seems to have held some truth historically, nowadays many doubt the January Effect’s legitimacy. So, is this 80-year-old hypothesis a thing of the past – or is it something you should prepare for? A brief history of the January Effect The January Effect was first noticed by investment banker Sidney Wachtel in 1942. During his studies of market returns dating back to 1925, he noticed that stocks tended to see greater gains in January than other months. Later, this theory was confirmed by multiple academics and spread to studies of other asset classes. As it evolved, some proposed that the January Effect was the result of smaller stocks outperforming larger stocks at the start of the year. Why does the January Effect occur? Analysts have offered several explanations for this effect … [Read more...] about The January Effect: Fact Or Fiction?
- A + A NEW YORK/BENGALURU (Jan 20): Wall Street's main indices ended sharply lower on Wednesday (Jan 19), with the tech-heavy Nasdaq confirming it was in a correction, after a diverse set of corporate earnings and as investors continued to worry about higher US Treasury yields and the US Federal Reserve (Fed) tightening monetary policy. The Nasdaq ended down 10.7% from its Nov 19 closing record high as stocks sold off into the market close. A correction is confirmed when an index closes 10% or more below its record closing level. The Nasdaq's last correction was in early 2021, when the tech-heavy index fell more than 10% from Feb 12 to March 8. It was the fourth time in the two years since the coronavirus pandemic shook global markets that the index has found itself in a correction. On Wednesday, Apple shares fell 2.1%, weighing most on the Nasdaq, while declines in Tesla and Amazon also dragged on the index. Stocks have gotten off to a rocky start in 2022 as a … [Read more...] about Wall Street sell-off deepens, Nasdaq confirms correction
- A + A NEW YORK/LONDON (Jan 20): Strong US and European corporate results could not stop a slide on Wall Street, where the Nasdaq entered a correction, as rising crude prices kept inflation concerns alive even as bond yields eased a bit after earlier touching fresh multi-year highs. The Nasdaq closed more than 10% lower from its Nov 19 record closing high to confirm a correction as investors continued to price in the US Federal Reserve (Fed) moving faster to hike interest rates, fears that led to Tuesday's (Jan 18) sell-off. Stock markets on both sides of the Atlantic initially rebounded, with an index of Europe's 600 biggest stocks rising as much as 0.8% as robust earnings from luxury majors Burberry and Richemont countered pressure from rising yields. Buoyant reports from UnitedHealth Group Inc and Procter & Gamble Co also initially lifted Wall Street. But the gains faded as concerns about rising inflation and higher rates rattled the market as investors … [Read more...] about Stocks slide on inflation concerns as oil prices rise further