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Q3 Earnings sends S&P 500 lower
Third quarter earnings seasons commenced this week, with the financial services industry, in particular banking, the first to disclose performance figures.
Amongst those to release earnings today were Bank of America and Wells Fargo, who both disappointed markets with a lacklustre performance in Q3.
BofA reported a 16% year-over-year decrease in earnings. which resulted in shares falling 5.33%, whilst Wells Fargo saw declines of 6% as earnings per share came in at 42 cents vs 45 cents expected.
At the close of trading, the Dow Jones was down 0.58%, the S&P 500 fell by 0.66%, and the NASDAQ Composite slid by 0.80%.
FTSE falls again as UK’s daily COVID cases hit 20,000
The FTSE 100 fell for a second consecutive day as Brexit uncertainty in addition to an increase in coronavirus infections kept investors away from the British index.
Earlier today, data released from the UK showed that the number of COVID-19 infections had risen to their highest since the crisis began. With new cases rising to 19,724 on Wednesday, compared to 17,234 the day before.
This has led to the Prime Minister; Boris Johnson being pushed by the opposition (Labour) to revert to a full national lockdown.
As a result of this news, the FTSE 100 was down 0.53%.
Goldman Sachs earnings beat expectations but trades flat
Despite a gloomy day for other major U.S. banks, Goldman Sachs today showed why it is considered by many to be ahead of the pack.
Shares in the banking juggernaut were up only 0.20% today, even as it posted its best quarterly performance in almost a decade, led by its trading business. This strong report offset by general market sentiment and outlook for the banks.
The bank reported that quarterly return on equity came in at 17.5%, which is its highest since 2010. Earnings per share came in at $9.68 vs $5.57 expected, whilst net revenues were $10.78 billion vs $9.45 billion expected.
Quote of the day – “If you can learn to create a state of mind that is not affected by the market’s behaviour, the struggle will cease to exist.”
Mark Douglas
WallStreetWord by Mike Venezia
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