Stock Market Today: Dow Jones, S&P 500 Sink On Bank Stock Earnings Miss & Warning

Stock Market Today Mid-Morning Updates

On Thursday, the Dow Jones Industrial Average is down by over 590 points as major banks begin reporting their earnings. This would allow investors insight into the state of the economy as they also weigh together monetary policy from the central bank after June’s inflation report. For instance, we have JPMorgan Chase (NYSE: JPM) reporting missed earnings and revenue. The company saw weaker investment banking activity during the quarter, although it reports strong equity and fixed income results.

Shares of Twitter (NYSE: TWTR) are up today after suing Elon Musk to force him to go through with his $44 billion takeover deal. Cisco Systems (NASDAQ: CSCO) is down today after JPMorgan Securities downgraded the company’s stock to a ‘Neutral’ rating from an ‘Overweight’ rating. Dollar General (NYSE: DG) also received a downgrade from Citi (NYSE: C) to a ‘Neutral’ rating from a ‘Buy’ rating. Citi says it sees downside risks to enterprise spending levels.

Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are down by 0.95% today while Microsoft (NASDAQ: MSFT) is also down by 2.41%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading lower on Thursday. Among the Dow financial leaders, Visa (NYSE: V) is down by 2.62% while JPMorgan Chase is also down by 4.32%

Shares of EV leader Tesla (NASDAQ: TSLA) are down by 2.51% on Thursday. Rival EV companies like Rivian (NASDAQ: RIVN) are also down by 4.29%. Lucid Group (NASDAQ: LCID) is trading lower by 1.94% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading lower today.

Dow Jones Today: U.S. Treasury Yield Edges Below 3.0%; Netflix Partners With Microsoft For Lower-Priced Service With Ads

Following the stock market opening on Thursday, the S&P 500, Dow, and Nasdaq are trading lower at 2.01%, 1.92%, and 2.02%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is down by 1.90% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also down by 1.96%. 

The benchmark 10-year U.S. Treasury yield is currently trading at 2.99% after big banks begin reporting their earnings today. Netflix (NASDAQ: NFLX) is pushing forward for an ad-supported tier with a partnership with Microsoft. This would be the streaming company’s first push into the advertising business after years of making the absence of ads a major part of its selling point to customers. Crypto lender Celcius is the latest crypto firm to fall, filing for bankruptcy this week. Last month, it froze customer accounts over extreme market conditions as various cryptocurrencies were involved in a major selloff. Bitcoin is currently trading below the $20,000 mark as well.

Morgan Stanley Reports Weaker-Than-Expected Quarterly Results As Investment Banking Dips

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Morgan Stanley (NYSE: MS) is front and center in the stock market today following its latest earnings call. Alongside its other big bank peers, investors would be keeping an eye on the company now. Getting straight into the details, Morgan Stanley’s latest quarterly results are somewhat lackluster. According to the press release, the company’s total earnings per share for the quarter is $1.39. Also, its total quarterly revenue is $13.13 billion. For comparison, consensus estimates on Wall Street are $1.53 and $13.48 billion respectively. Overall, Morgan Stanley cites persisting deceleration in its investment banking revenue for its latest performance. The likes of which is currently down by a sizable 55% year-over-year.

Providing some further context on all this is CEO James Gorman. He notes, “Overall the Firm delivered a solid quarter in what was a more volatile market environment than we have seen for some time. Strong results in Equity and Fixed Income helped partially counter weaker investment banking activity. We continue to attract positive flows across our Wealth Management business, and Investment Management continues to benefit from its diversification. Finally, we finished the quarter in a strong capital position to ensure we move forward with confidence.” It seems that as the major banks continue to deal with the overall volatility in financial markets, things could get bumpy moving forward. As a result of all of this, MS stock is now trading lower by 1.88% at the opening bell today.

Source: TradingView

Taiwan Semiconductor Manufacturing Stock Gains After Posting Record Quarterly Profit

Shares of the Taiwan Semiconductor Manufacturing Company (NYSE: TSM) or TSM, for short, appear to be gaining traction. For the most part, this follows the company’s latest financial update. In it, the company posted commendable figures overall. According to TSM’s earnings report, the company’s quarterly earnings per share is $1.55. Furthermore, TSM’s total revenue for the quarter is $18.16 billion. For reference, this is versus consensus Wall Street forecasts of $1.50 and $17.58 billion respectively. Not to mention, the company also posted a record quarterly net income of over $7.9 billion. Year-over-year, this adds up to a massive 76.4% jump for the company. Such a strong performance from the world’s largest semiconductor chip manufacturer could help to ease demand concerns globally.

All in all, the company notes that strong momentum across its core and emerging end markets is to thanks for this. Among which are TSM’s high-performance computing, Internet-of-Things, and automotive-focused sections. Also in the company’s latest earnings release, TSM is forecasting revenue of between $19.8 billion to $20.6 billion. Should this be the case, it would represent a year-over-year gain of 39% on the higher end. However, despite all this, CEO CC Wei does highlight that TSM expects “greater challenges in the supply chains,” moving forward. After considering these upbeat results and cautious outlook, TSM appears to be adapting to the times. The real question now is if investors should be keeping an eye on TSM stock amidst all this or not.

Source: TradingView

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