Morning Rally Turns Afternoon Losses On Wall Street

Barry Adams
18 Jul, 2022
New York City

Stocks turned lower in the afternoon and Bank of America and Goldman Sachs reported better than expected quarterly results. 

The S&P 500 index decreased 0.8% to 3,830.85 and the Nasdaq Composite index fell 0.8% to 11,360.06. 

Futures of crude oil prices increased $4.53 to $102.09 and natural gas advanced 43 cents to $7.44 a unit. 

The yield on 10-year U.S. Treasury notes increased to 2.98%.  

Market sentiment turned negative after Goldman said it is looking to reinstate job cuts at the end of the year and a report suggested Apple plans to slow hiring, joining other tech companies in looking to curtail hiring. 

Goldman Sachs gained 2.6% to $301.26 after the financial services company said a surge in bond trading revenues helped to offset the weakness in investment banking revenues in the latest quarter ending in June. 

Revenues in the quarter declined 26% to $11.86 billion and net income fell 47% to $2.9 billion or $7.73 a diluted share from $5.4 billion or $15.02 a share a year ago.  

Goldman lifted its quarterly dividend to $2.50 a share in the third quarter. 

Bank of America increased 0.1% to $32.34 after the lender benefited from the rising rate environment. 

Revenues, net of interest expenses, increased 6% to $22.7 billion and net income declined to $5.9 billion or 73 cents a diluted share from $8.9 billion or $1.03 a diluted share. 

The bank also took a charge of $523 million for the provision of credit losses. 

Investors are also awaiting earnings this week from 135 companies including Tesla, Netflix, United Airlines, Union Pacific, Johnson & Johnson, and Verizon.   

Boeing Co increased 4.5% to $154.60 after Delta Airlines placed an order for 100 737 MAX 10 jets. 

"The aircraft will be 20%-30% more fuel efficient than the retiring Delta planes," Delta added in a press statement released at the signing ceremony at the 2022 Farnborough International Airshow. 

Nearly one-third of the aircraft