Traders work on the New York Stock Exchange (NYSE)
by Chuck Mikolajczak
NEW YORK (Reuters) – The New York Stock Exchange closed on Tuesday in mixed order, as Goldman Sachs’ lower-than-expected quarterly earnings weighed on the Dow Jones, while Tesla’s earnings helped the Nasdaq post a slight gain. , against the backdrop of an early earnings season.
The Dow Jones index fell 1.14%, or 391.76 points, to 33,910.85 points.
The broader S&P-500 fell 8.12 points, or 0.20%, to 3,990.97 points.
The Nasdaq Composite for its part advanced 15.96 points (0.14%) to 11,095.11 points.
The Dow Jones sees its positive streak interrupted after four sessions. The Nasdaq finished higher for the seventh consecutive day, equaling a record that dated back to November 2021.
Major US banks, which were kicking off quarterly earnings season, released mixed results.
According to Anthony Saglimbene, chief strategist at Ameriprise Financial, in Troy, Michigan, analysts are cautiously awaiting clues about demand for corporate earnings.
“Earnings expectations have fallen so much at the start of the earnings season that it’s possible companies are going above a really low level,” he commented. “If the demand environment remains healthy enough, then it will exceed expectations,” she added.
Goldman Sachs posted its largest one-day percentage decline since January 2022, down 6.44% after posting a sharper-than-expected drop in quarterly earnings.
These disappointing results were the main vector of the Dow Jones’ decline during this first session of the week, following a holiday Monday. Travelers contributed to the decline after announcing a lower-than-expected profit forecast
The bright spot on Wall Street came from Tesla, which rose 7.43% after the electric vehicle maker reported increased sales in China this month on the back of lower prices for its models. main.
Another US bank kicking off earnings season, Morgan Stanley rose 5.91% after releasing quarterly earnings that beat expectations.
According to data from Refinitiv, analysts are now expecting earnings declines of 2.4% year over year for S&P-500 companies in the final quarter of 2022, up from a previous decline of 1.6%.
Wall Street has started the year quite positively after a tumultuous 2022, with stagnant inflation and a slowing economy fueling hopes that the US Federal Reserve (Fed) will be less aggressive in its rate hikes.
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(French version Jean Terzian)