NEW YORK: The Dow tumbled on Tuesday (Jan 17) following disappointing results from major investment bank Goldman Sachs and insurer Travelers ahead of key economic data later in the week.
Goldman Sachs plunged 6.4% after it badly missed analyst estimates as merger revenues dove, while Travelers dropped 4.6% after it disclosed US$459 million (RM1.98 billion) in estimated catastrophe losses reflecting the hit from last month’s winter storm.
Weighed down by those two companies, the Dow Jones Industrial Average fell 391.76 points, or 1.14%, to 33,910.85 and the S&P 500 lost 8.12 points, or 0.20%, to 3,990.97. The Nasdaq Composite added 15.96 points, or 0.14%, to 11,095.11.
The Dow snapped a four-session win streak, while the Nasdaq notched its seventh straight gain, its longest streak since November 2021.
A 7.43% jump in Tesla helped keep the Nasdaq afloat after recent price cuts the company made on its top-selling models, data from China Merchants Bank International showed.
Tesla was the largest percentage gainer on both the S&P 500 and the Nasdaq 100.
“We’re seeing a big rotation occurring beneath the surface,” said Adam Sarhan of 50 Park Investments, noting that tech shares are gaining after a dismal 2022.
China reported its lowest annual economic growth in decades but still topped analyst estimates, while German investor confidence soared in January, as lower energy prices and cooling inflation boost the economic outlook.
Tuesday marked the first session of the week after markets were closed for Monday's Martin Luther King Jr holiday.
Analysts are anxious to hear from corporate America about the demand environment amid signs of an upward trend in the economy, said Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan.
“Earnings estimates have declined so much at the start of earnings season that there’s potential for companies to hurdle past a really low bar,“ he said. “If the demand environment is still relatively healthy, that would exceed expectations because I think analysts took down earnings so much.”
This week's economic calendar includes key housing data and retail sales for December.
Among individual companies, Morgan Stanley jumped 5.9% after reporting better-than-expected profits, as chief executive James Gorman said a strong performance in wealth management and other divisions made up for weakness in investment banking. – AFP, Reuters
Source: The Sun Daily
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