- U.S. equities indexes began the short trading week with a mixed performance on Tuesday, Jan. 17, 2022.
- Earnings reports from Goldman Sachs and Travelers raised concerns about profits, sending the Dow Jones Industrial Average lower.
- The S&P 500 also declined, while the Nasdaq eked out a small gain, marking its seventh-straight positive session.
- Tesla led all stocks on the S&P 500 as its price reduction in China drove an uptick in sales.
U.S. equities began the shortened trading week mixed as more corporate earnings reports rolled in. The Dow lost almost 400 points, sent lower by concerns about profits at Goldman Sachs (GS) and The Travelers Companies (TRV). The S&P 500 lost ground, while the Nasdaq had a modest gain, posting its seventh-straight winning session.
Goldman Sachs shares dropped 6% after the firm reported a big decline in investment banking revenue along with higher costs. Shares of JPMorgan Chase (JPM), Bank of America (BAC), and PNC Financial Services Group (PNC) also fell. However, strong earnings from Morgan Stanley (MS) sent its shares soaring.
Travelers said catastrophe losses from the big winter storm at the end of 2022 negatively affected its bottom line, and shares declined nearly 5%. Shares of rivals Allstate (ALL) and Progressive (PGR) dropped as well.
Along with Goldman and Travelers, shares of 12 other companies in the Dow lost more than 1%, with Honeywell (HON), Dow (DOW), 3M (MMM), and Verizon (VZ) shares tumbling 2%.
Tesla (TSLA) was the best-performing stock in the S&P 500 as sales in China surged after the electric carmaker reduced prices there. Shares of Nvidia (NVDA) jumped on positive comments from Bank of America analysts. Church & Dwight (CHD) shares rose as both Morgan Stanley and Credit Suisse upgraded the stock. CarMax (KMX) shares climbed on speculation that the used car retailer may be targeted for a takeover by an activist investor.
Oil futures were at their highest level since early December. Gold prices declined for the first time in a week. The yield on the 10-year Treasury note advanced. The U.S. dollar was up against the euro but dipped versus the pound and yen. The rally for most major cryptocurrencies continued, with Bitcoin (BTC/USD) trading well above $21,000.