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Stock market today: Dow falters on Goldman rout to end 4-day win streak

Published 01/17/2023, 04:28 PM
Updated 01/17/2023, 04:38 PM
© Reuters.

© Reuters.

By Yasin Ebrahim

Investing.com -- The Dow snapped a four-day winning streak after closing lower Tuesday, paced by a rout in Goldman Sachs after the Wall Street banking giant delivered its worst earnings miss in a decade. 

The S&P 500 fell 0.2%, the Dow Jones Industrial Average slipped 1.14%, or 317 points, and the Nasdaq Composite was up 0.14%.

Goldman Sachs Group (NYSE:GS) fell more than 6% after its fourth-quarter results missed estimates amid rising costs, weakness in its consumer banking business and a 48% slump in investment banking revenues.

Morgan Stanley (NYSE:MS), however, rallied more than 5% after delivering better-than-expected fourth-quarter results as record revenue in its wealth management business offset weakness in investment banking amid lower deal-making activity.

Communication services also pressured the broader market, paced by a decline in media stocks including Verizon Communications (NYSE:VZ) and Netflix (NASDAQ:NFLX).

Ahead of the Netflix’s quarterly results due Thursday, UBS said it expected the streaming giant’s fourth-quarter subscriber growth tracked in-line with management’s guide amid a “strong content slate & seasonality.”

Netflix is expected to add about 4.5 million subscribers in Q4, up from 2.4M in the prior quarter, but down from 8.3M in Q4 last year.

Snap (NYSE:SNAP) fell 1% after JMP Securities downgraded the social media company to market perform from market outperform, citing softer engagement and increased competition.

Big tech was also mostly lower, with Apple (NASDAQ:AAPL) the exception, after the tech company announced the launch of its new Macbook pro featuring its advanced M2 chip and a 22-hour battery.

Microsoft (NASDAQ:MSFT) cut gains as Guggenheim downgraded the stock to sell from neutral, on worries that the company’s guidance for the second quarter and the full year may fall short of Wall Street estimates. 

Tesla (NASDAQ:TSLA) rallied 7% as Deutsche Bank “strongly” reiterated its buy rating on the company on expectations that the recent price cuts will likely help underpin the electric vehicle maker’s volume growth.

“[W]e believe this likely is a bold offensive move, which secures Tesla’s volume growth, puts its traditional and EV competitors in great difficulty, and showcases Tesla’s considerable pricing power and cost superiority,” Deutsche Bank said.

Crypto-related stocks including Riot Blockchain Inc (NASDAQ:RIOT), Marathon Digital (NASDAQ:MARA) were also in the ascendency as bitcoin added to recent gains to extend its winning streak. 

On the economic front, the New York Fed’s Empire State business conditions index, a measure of activity in the New York state, fell to -32.9 in January, the worst reading since the pandemic.

Latest comments

just a temporary blip in the long march upward.
You all will see circuit breakers as the S&P500 goes below 2,000. It will never reach 4,000 again in our lifetimes.
Are you 98?
Tell me that you truly believe in your prediction...tell me by how much you've shorted the markets with every penny you could scrounge up. Go ahead and tell us or stop making rash predictions that you don't really believe in.
He predicts $200 barrel an oil by summer too. He's a nihilist cheering for chaos - more wishing than predicting.
GS didn't deserve to drop so sharply with a 9/1 PE ratio. Nor, M S to rise 6% .with 14/1 PE ratio. The PricesInTheCasinoArePreordained. Haha.
It must be good but real good
How I told , you don't pick grapes from thorns and propaganda. Inlude lack customer service and not solving claimts
You couldn't have said it any better.
The Devil is the Father of all lies. He tempted Jesus 3 times. On one occasion saying: if you worship me, all will be yours.
Amen, brother !(⁠*⁠_⁠*⁠)
Makes one wonder why evangelicals supported a liar for president. Were they deceived by the devil or just lacking in conviction?
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