Movers: Ally Financial, Carvana, Goldman Sachs, J B Hunt, Joby Aviation, Western Alliance Bancorp

Scott Peters
19 Jul, 2023
New York City

Stocks continued to march higher after investors estimated the probability of a hard-landing scenario is receding. 

The S&P 500 index traded higher 0.3% to 4,570.45 and the Nasdaq Composite futures edged up 0.3% to 14,391.64. 

Goldman Sachs Group Inc declined 0.3% to $336.85 after the company reported lower-than-expected adjusted quarterly earnings because of losses in real estate and GreenSky. 

Net revenue declined 8% to $10.9 billion from $11.9 billion and net earnings plunged to $1.2 billion from $2.8 billion and diluted earnings per share dropped to $3.08 from $7.73 a year ago.

Investment banking fees declined 20% to $1.4 billion from $1.8 billion after merger advisory fees plunged 46% to $647 million from $1.2 billion. 

Fixed-income bonds, currencies and commodities trading revenue plunged 28% to $2.7 billion from $3.6 billion and equities trading revenue increased 1% to $2.9 billion. 

Asset and wealth management revenue decreased 4% to $3.04 billion from $3.2 billion a year ago.  

Book value increased 1.9% to $309.33 a share. 

Carvana Company soared 30.1% to $52.36 after the used automobile retailer said it struck a deal to lower its debt by $1.2 billion. 

The company said the deal will eliminate about 80% of its unsecured notes in 2025 and 2027. 

Joby Aviation Inc plunged 12.2% to $8.88 after JPMorgan Chase lowered its stock rating to "underweight" from "neutral" and analyst Bill Peterson added in a client note that the adoption of electric aircraft "will take much longer than currently embedded in bullish expectations."

Ally Financial Inc increased 3.0% to $29.0 after the company reported a decline in earnings but ahead of market expectations. 

Total revenue in the quarter was unchanged at $2.07 billion and net financing revenue declined to $1.6 billion from $1.8 billion and net income attributable to shareholders declined to $301 million from $454 million and diluted earnings per share fell to 99 cents from $1.40 a year ago. 

The company has about 2.9 million retail deposit customers with an average balance of $50,000 and 92% of retail deposit balances are FDIC insured. 

Net interest margin was 3.4%, indicating that the bank is passing on higher interest rates to its customers but not to depositors. 

Total deposits increased by $13.9 billion from a year ago to $154.3 billion at the end of the second quarter. 

Western Alliance Bancorp extended gains for the second day in a row by 8% to $46.42 despite the company reporting weak quarterly results. 

Net revenue increased 21.3% to $669.3 million and net income decreased 17.1% to $215.7 million from $260.2 million and diluted earnings per share fell to $1.96 from $2.39 a year ago. 

Total deposits declined 5% from a year ago and rose 7.3% from the previous quarter to $51.0 billion. 

The rise in deposits from the previous quarter showed that the bank is attracting new customers and avoiding the much feared run on the bank, a key driver indicator of the customer confidence. 

Net interest margin decreased to 3.42% from 3.54% a year ago and from 3.79% in the previous quarter. 

J.B. Hunt Transportation Services increased 2.9% to $193..33 after the trucking services provider reported better-than-expected quarterly results. 

Revenue in the second quarter declined 18% to $3.13 billion from $3.83 billion and net earnings dropped to $189.5 million from $1255.4 million and diluted earnings per share fell to $1.81 from $2.42 a year ago.  

The company repurchased 315,000 of its own shares in the second quarter for $53 million and $463 million were still available in its stock repurchase plan.