Big banks in the crosshairs: Wall Street nervously awaits balance sheets

Big banks in sight
Wall Street nervously awaits financial statements

There is no peace on the stock markets. After nervous ups and downs, the Dow Jones closed slightly higher, the S&P 500 and Nasdaq closed the trading day with further losses. Above all, Uber, Lyft and Doordash will be sanctioned – because of a possible regulation by the US labor authorities.

Just days before the start of the accounting season on Wall Street, investor nervousness is mounting. The US indices went on a roller coaster ride on Tuesday. Speculation about disappointing corporate results initially caused further losses, but then the stock markets gained ground thanks to bargain hunters.

At the end of the trade it was Dow Jones 0.1 percent higher at 29,239 points. A price increase from the pharmaceutical company amgen of more than six percent after positive analyst comment helped the benchmark index move higher. the wider S&P 500 fell by 0.6 percent to 3,588 points. The index of the technology stock market Nasdaq noted 1.1 percent lower 10,429 points. The volatility index neared its highest point in two weeks.

European stocks had previously fallen for the fifth trading day in a row. Rampant inflation coupled with restrictive monetary policy, geopolitical tensions and fears of a recession are fundamentally weighing on equity markets,” said investment expert Salah Bouhmidi of trading house IG Europe.

S&P 500 3,592.07

Economic pessimists also dominated the commodity markets. The variant of crude oil Brent from the North Sea fell by two percent to $94.24 per barrel (159 liters) and buyer by 0.3 percent to $7556 per ton. The resurgence of the coronavirus pandemic at top buyer China is also depressing the mood here, stock brokers said.

Banks in sight

Economically sensitive stocks fell out of favor with investors. The S&P 500 Bank Index fell more than one percent to its lowest level since November 2020. Investors shudder at glimpses of the health of the U.S. economy as four of the country’s largest lenders — JP Morgan, Wells Fargo, Citigroup and Morgan Stanley open their books at the beginning of the accounting season.

JPMorgan Chase
JPMorgan Chase 106.00

“Net margin numbers should be very good for those banks that aren’t tied to investment banking revenues, but should be pretty weak for those that are,” said Rick Meckler, a partner at asset manager Cherry Lane Investments.

Shares of US Taxi Service Providers Above and lyft and the food supplier door dashboard came under pressure, losing between six and 12 percent. The background is a planned regulation by the US labor authorities that would make it more difficult for companies to treat employees as independent contractors. For example, workers would be entitled to more benefits and legal protection, which would increase labor costs.

Coinbase Investors Applaud Google Partnership

Zscaler stood out with a loss of more than four percent. Surprisingly, the president of cloud-based security software platform provider Amit Sinha resigns.

Coinbase on the other hand, after announcing a partnership with the search engine service Google, they took off. At the top, the cryptocurrency platform’s titles were up 7.5 percent. Some Google customers should be able to pay for their cloud services with select cyber currencies through Coinbase.

“For Coinbase shareholders, this news is grist to the mill. It remains to be seen how much demand will actually develop in a practical sense,” said Emden Research analyst Timo Emden.

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