Marketbites: Split Bank Results
MARKET PERFORMANCE:
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Portfolio Manager Commentary:
The Nasdaq was the only index to finish positive on Tuesday as investors struggled to keep building on early 2023 momentum and weighed the latest earnings results. Goldman Sachs dropped 6.44% after the bank reported its worst earnings miss in a decade for the fourth quarter. Its results were influenced by declines in investment banking and asset management revenues. Meanwhile, rival Morgan Stanley posted better-than-expected numbers, thanks in part to record wealth management revenue. Its shares jumped 5.91%. Those results came after other major banks such as JPMorgan and Citigroup reported mixed quarterly reports.
About 7% of S&P 500 earnings have reported earnings through Tuesday morning, according to FactSet. Of those companies 70% have beaten expectations. Year-to-date, the Nasdaq Composite is leading the way up 6.82%, as investors buy beat-up technology shares amid rising hopes of an improving landscape for growth stocks. The S&P 500 and Dow have advanced 4.36% and 2.34%, respectively, since the start of the year.
Chart of the Day:
China’s economy grew at one of its slowest rates in decades last year after repeated lockdowns bruised households and businesses, emphasizing the high cost of zero-tolerance Covid-19 policies that Beijing abruptly abandoned at the end of 2022. China’s economy expanded 3% in 2022, the National Bureau of Statistics said Tuesday, a sharp slowdown from the 8.1% pace recorded in 2021. Aside from 2020, when the economy grew only 2.2%, last year marked the worst year for gross domestic product growth in China since 1976, the year that Mao Zedong’s death ended the decade of strife known as the Cultural Revolution, according to World Bank data. Economists expect China to have a strong consumer-led economic rebound in 2023 now that public-health restrictions are lifted.
Source: WSJ
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