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U.S. stocks are rising as earnings continue; Goldman misses on write-downs

Published 19/07/2023, 15:24
© Reuters.
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Investing.com -- U.S. stocks were rising as earnings continued to roll in. Goldman Sachs posted an earnings miss after a write-down related to one of its consumer businesses.

At 11:12 ET (15:12 GMT), the Dow Jones Industrial Average was up 144 points or 0.4%, while the S&P 500 was up 0.3% and the NASDAQ Composite was up 0.4%.

Goldman stumbles on write-downs, investment banking drought

The Goldman Sachs Group, Inc. (NYSE:GS), which is also feeling the effects of a slump in deal-making on Wall Street, wrote down $504 million related to the GreenSky home improvement lending business and another $485M related to real estate investments. Investment banking fees fell 20%. Shares rose 1.4%.

Regional lenders fared better, with Citizens Financial Group, Inc. (NYSE:CFG) and M&T Bank Corporation (NYSE:MTB) both beating expectations as they got a boost from rising interest rates.

Bank stocks have been beaten down this year after the failures of three large banks this spring stoked fears that rapidly rising rates would pose excess risks in the financial system. The S&P 500 banking index is down 3.4% this year.

Fed heads to meeting next week

The Federal Reserve is poised to raise rates again at its meeting next week after pausing on another rate hike in June. Futures traders expect a quarter of a percentage point hike, but then some believe the Fed could stay on hold until it assesses the progress of its actions so far to cool inflation.

Next week also features a second quarter reading on gross domestic product and the latest personal consumption expenditures index, a key inflation reading.

Tesla, Netflix poised to report latest quarter

In other stock movers, shares of used car seller Carvana (NYSE:CVNA) rose 37% after a deal with its bondholders to cut more than $1 billion in debt.

Tesla (NASDAQ:TSLA) and Netflix (NASDAQ:NFLX) are expected to report results after the closing bell tonight, kicking off earnings for the technology sector as investors focus on artificial intelligence and a Hollywood strike by actors and writers that is threatening results at major media companies.

Microsoft Corporation (NASDAQ:MSFT) shares rose 0.2% after the software giant announced it would charge $30 a month for business customers to access AI tools on its Office suite of products, increasing the overall cost of the software.

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