The week begins on a positive note for the Wall Street investors. US futures are in green with S&P 500, Nasdaq and Dow all in the positive territory up by 1 per cent.
Dow is up by almost 300 points and Nasdaq is over 1.10 per cent in the pre-market session. Goldman Sachs released surprising numbers by exceeding the street expectations in terms of revenues and earnings. The investors are also gearing up to a less aggressive rate hike from the Fed in the near future.
Goldman Sachs has reported Second Quarter Earnings Per Common Share of $7.73 and has increased the Quarterly Dividend to $2.50 Per Common Share in the Third Quarter. The company today reported net revenues of $11.86 billion and net earnings of $2.93 billion for the second quarter ended June 30, 2022. Net revenues were $24.80 billion and net earnings were $6.87 billion for the first half of 2022. Timing for the Goldman Sachs conference call to discuss the firm’s financial results, outlook and related matters is 9:30 am (ET), Monday, July 18, 2022.
Bank of America stock has slipped after the announcement of results that missed the analyst’s targets.
Last week, US stocks closed higher after Friday trading. Banks and managed care were among the strongest groups after well-received earnings reports. Credit cards, asset managers, media, internet retail, air freight and logistics were some other outperformers. Solar energy, precious metal miners, utilities were areas of relative weakness.
The rebound in the markets comes at a time when inflation still remains untamed and the impact of Fed rate hikes on growth remains unanswered. Lisa Shalett, Chief Investment Officer, Wealth Management at Morgan Stanley says, “ It is too early to price in an imminent recession. More likely, we’ll see stagflation, where growth slows but is nominally positive, inflation stays higher for longer and financial markets continue to face volatility.”