On October 18th local time, the three major indexes of U.S. stocks fluctuated, and rose collectively at the close, closing for two consecutive trading days.
The third quarter report of the US stock market was disclosed. Goldman Sachs, the world's top investment bank, released its financial report on the same day, showing that its revenue in the third quarter decreased year-on-year but exceeded market expectations. Its revenue in the investment banking business, , plummeted by 57%, significantly lower than expectations; Netflix 's third quarter performance exceeded market expectations, and its stock price rose by more than 14% after the market.
Wall Street institutions warn that investors still lack confidence in U.S. stocks. Bank of the United States predicts that S&P 500 index may fall back to around 3000 points, which means that the S&P 500 may have about 19% downside.
US stocks rose for two consecutive days
Local time On October 18, local time, the three major U.S. stock indexes fluctuated, and rose collectively at the close, closing for two consecutive trading days. According to Wind data, as of the close, Dow Jones Industrial Average rose 1.12% to 30,523.80 points; the S&P 500 rose 1.14% to 3,719.98 points; and Nasdaq rose 0.90% to 10,772.40 points.
Source: Wind
From the perspective of industry sectors, U.S. bank stocks and aviation stocks performed well. According to Wind data, as of the close, Morgan Stanley and Bank of America both rose by more than 3%, JPMorgan and Goldman Sachs both rose by more than 2%; American Airlines , Delta , United Airlines and United Airlines both rose by more than 3%.
US stock third quarter report disclosure season has begun. On October 18 local time, the third quarter report performance of the world's top investment bank Goldman Sachs and streaming giant Netflix attracted much attention.
Netflix released its financial report showing that the company achieved revenue of US$7.93 billion in the third quarter of 2022, exceeding the expected US$7.837 billion; net profit of US$1.398 billion, significantly exceeding the market's expectations of US$966 million; Netflix's net increase in streaming paid users in the third quarter by 2.41 million, and the market estimates a net increase of 1 million. Netflix's fourth-quarter performance guidance also exceeded expectations. It expects a net increase of 4.5 million streaming paying users in the fourth quarter, and the market estimates a net increase of 3.9 million. Boosted by exceeding expectations, Netflix rose more than 14% after the showdown.
Goldman Sachs' latest financial report shows that in the third quarter, Goldman Sachs achieved revenue of US$11.98 billion, although it fell 12% year-on-year, but it still exceeded market expectations of US$11.4 billion. Among them, the revenue of investment banking business plummeted by 57% to US$1.58 billion, 20% lower than expected. In addition, Goldman Sachs CEO David Solomon confirmed that Goldman Sachs will enter the "next growth stage", and its four major business segments will be reorganized into three parts. The investment banking , as Goldman Sachs' signature, will merge with its trading business, and the asset management and wealth management businesses will also be reorganized into a new department. At the same time, a new "platform solution" department will be established, which will accommodate Goldman Sachs' emerging digital enterprise cash management tools.
Wall Street Warning risks
In the view of Wall Street analysts, although the US stock market continues to rise, the sharp intraday fluctuations also reflect investors' doubts, indicating that they still lack confidence in US stocks.
html The S&P 500 has fallen by about 22% since the beginning of the year, but Goldman Sachs believes that the index's current price is still too high. Goldman Sachs said that the S&P 500's price-to-earnings ratio at the beginning of this year was 21 times, the 91st percentile since 1980. Although the price-to-earnings ratio has since dropped to 15.8 times, it still remains in the 66th percentile. Goldman Sachs strategy analyst Christian Mueller-Glissmann proposed that investors should sell call options on the S&P 500. "When you are in the pain of a bear market, in addition to seeing the stock market rise significantly, you also need to see the bond yields drop significantly, and that is the real rebound." But this has not happened now, on the contrary, the yields of US government bonds have been rising.The latest survey report released by Bank of America shows that among the S&P 500 component , which has released financial reports, only 42% of the companies reported that both revenue and profit were higher than expected, the ratio was the lowest since the first quarter of 2020 and lower than the historical average of 47% in the first week of the financial report quarter. "Canaries that are bad for U.S. stocks are tweeting at commodity manufacturers, which is not good for U.S. stocks," Bank of America wrote in the report.
In addition, Bank of America predicts that due to the continued U.S. inflation and violent Fed hike rate , the profit growth space of U.S. listed companies is narrowing, and the S&P 500 index may fall back to around 3,000 points. Compared with the latest closing price , this means that the S&P 500 may have about 19% downside.
Editor: Song Zhaoqing Wang Yin
