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© Reuters.
By Liz Moyer
Investing.com -- U.S. stocks are falling to start a new week after Goldman Sachs posted worse-than-expected quarterly results on rising costs and a slump in deal activity.
At 11:19 ET (16:19 GMT), the Dow Jones Industrial Average was down 377 points or 1.1%, while the S&P 500 was down 0.3% and the NASDAQ Composite was down 0.3%.
Wall Street returned from a long holiday weekend in the U.S. with a somber mood set by weak economic data out of China.
Then Goldman Sachs Group Inc (NYSE:GS) released earnings, reporting a 66% drop in profit from the last quarter of 2021 and a 16% drop in revenue. Rising costs and a bigger provision for credit losses weighed on results. Investment banking fees fell nearly 50%. Shares were down 6.8%.
Rival Morgan Stanley (NYSE:MS), however, beat expectations and reported record revenue in its wealth management business. Its shares rose 5.9%.
Regional banks and other financial services companies will continue to report this week but the results from Goldman and Morgan Stanley round out the big firms and put the focus on more S&P 500 companies yet to report, including Netflix Inc (NASDAQ:NFLX) later this week.
Analysts expect corporate earnings from the S&P 500 will drop this quarter. This week also brings reports on retail sales and the Federal Reserve’s Beige Book, which is a periodic economic survey of the central bank’s regional banks.
Inflation has shown signs of cooling, as has the labor market, fueling expectations that the Fed will raise rates by a smaller quarter of a percentage point increment when it next meets in February.
Oil rose. Crude Oil WTI Futures were up 0.3% to $80.30 a barrel while Brent Oil Futures rose 1.3% to $85.56 a barrel. Gold Futures were down 0.4% to $1,913.
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