Wall Street listed with sales this Tuesday after earnings on Monday, which allowed the Dow Jones close for the first time above 43,000 points and set new all-time highs, just like the S&P 500. This, as investors focus their attention on the results season which, little by little, is gaining traction. In this session, banks such as Goldman Sachs, Bank of America and Citigroupand other important companies such as Johnson & Johnson. In the case of Bank of Americahas obtained in the third quarter of the year profits of $6.9 billionwhich means a 12% less than the $7.8 billion in the same period of 2023, due to lower interest income. However, it has exceeded market estimates.
Goldman Sachs rises 3% after win 2,990 milliona 45% morein the third quarter, which translates into a earnings per share (EPS) of $8.40, which exceeds the market's expectations of $6.89 per share. For its part, Citi increases in value by 2% after obtaining a net profit of 3,238 million dollars between June and September. Although this figure is below the 3,546 million achieved a year ago (-9%), it represents a clear improvement compared to market forecasts. Specifically, the consensus of analysts is an earnings per share (EPS) of $1.31, which ultimately amounted to $1.51 per share. «For him whole S&P 500the expectation for the third quarter is an increase of 4% in incomewith a slowdown expected in benefits up to 5% (compared to 13.2% seen in the second quarter). By sectors, growth will be led by technology and healthwhile on the opposite side, energy companies and the materials sector will continue to be under pressure,» they indicate in Renta 4 Banco. For Ipek Ozkardeskaya, senior analyst at Swissquote, «The positive vibes could continue as we head deeper into earnings season. At the very least, analysts gradually cut their third-quarter earnings expectations to around 4% growth, while this expectation was close to 8% in the summer. However, the companies themselves have guidance of around 16% profit growth. The gap suggests that Actual earnings could easily exceed estimates. And better-than-expected estimates are valuations' best friend.»
MARKET ANALYSIS
«He bullish argument –strong earnings growth, solid economic growth and the strong 'Fed position' as support– still intacteven if the upcoming US data is likely to be quite mixed over the next quarter, as evidenced by the quite discouraging unemployment claims figures last week,» said Michael Brown, senior research strategist at Pepperstone. However, for the expert, that should not be enough to derail the bull market, as the declines are likely to remain relatively mild and «that participants continue to consider them purchasing opportunities. The start of Big Tech earnings next week is the most obvious risk on the horizon needs to be addressed, and the market will likely continue to rise until then.
COMPANIES AND OTHER MARKETS
In today's business, results continue to take center stage, and this Tuesday UnitedHealth has been held accountable, which falls 2% in the session despite having reached forecasts with its figures, since the market negatively values the reduction in expectations for the year as a whole. In addition, the pharmacy chain Walgreens has risen 12% after presenting some results of its fiscal fourth quarter that have improved consensus analysts' forecasts.
In other markets, oil West Texas drops 4.70% ($70.35) and the Brent drops 4.11% ($74.27), after Israeli Prime Minister Benjamin Netanyahu told the US that Israel wants to attack Iranian military targetsbut no nuclear or oil. For its part, the euro appreciated 0.03% ($1.0913), and the ounce of gold gained 0.12% ($2,668). Furthermore, the 10-year American bond yield yields to 4.049%; and the bitcoin loses 0.36% ($65,728).