US Stock Market Slips Lower as Investors Digest Quarterly Earnings
Investors in the US stock market witnessed a slight decline on Tuesday, giving back some of the gains from the previous session. The drop came as investors processed the latest influential quarterly earnings reports. Let’s take a closer look at the movers and shakers in today’s premarket trading.
Goldman Sachs
Goldman Sachs stock experienced a 0.2% rise in volatile trade. The investment bank’s profit for the third quarter exceeded expectations. However, the stock was weighed down by a writedown on its GreenSky fintech business and real estate investments.
Bank of America
Bank of America stock rose 1% after the banking giant’s third-quarter results surpassed expectations. The increase was driven by a 4% rise in net interest income, fueled by higher interest rates and loan growth.
Tesla
Tesla stock fell 0.4% after the electric vehicle manufacturer was instructed to recall nearly 55,000 Model X vehicles manufactured between 2021 and 2023. This recall was prompted by a potential failure of the vehicle controller to detect low brake fluid and indicate a warning light.
Lockheed Martin
Lockheed Martin stock experienced a 1.7% decline. Sales at the defense giant’s aeronautics unit, the largest by size, saw a 5.2% drop in the third quarter, despite reporting higher overall revenue.
Microsoft
Microsoft stock fell 0.4% as the tech giant’s LinkedIn unit announced plans to lay off over 600 employees in the second round of job cuts this year. This decision was made in response to slowing revenue growth for the professional social media network.
Bank of NY Mellon
Bank of NY Mellon stock rose 0.6% after the lender exceeded estimates for third-quarter profit. Rate hikes by the Federal Reserve bolstered the bank’s income from loans.
Johnson & Johnson
Johnson & Johnson stock rose 1.5% as the drugmaker raised its 2023 profit forecast. This increase was supported by resilient demand for its anti-inflammatory drug Stelara and a $21 billion gain from the spin-off of its consumer health unit.
Wyndham Hotels & Resorts
Wyndham Hotels & Resorts stock soared over 15% after rival company Choice Hotels disclosed its offer for a cash and stock deal worth approximately $7.8 billion. In contrast, Choice Hotels stock fell 6% following the announcement.
Ericsson
Ericsson ADRs fell 4.8% after the Swedish telecom gear maker faced a nearly $3 billion impairment charge related to its acquisition of Vonage last year. Additionally, the company reported a decline in core profits for the third quarter due to decreased demand in North America.
NetScout Systems
NetScout Systems stock slumped 20% after the enterprise software firm lowered its revenue and profit forecasts for 2024.
SunPower
SunPower stock fell 8.5% after Morgan Stanley downgraded its rating on the solar energy company to ‘underweight’. The downgrade was attributed to various factors, including the possibility of a capital raise to maintain liquidity.
Despite the slight dip in the US stock market, investors remain engaged as they analyze the latest quarterly earnings reports of influential companies. The market continues to fluctuate, and investors eagerly await further developments.
