Select Page

Goldman Sachs Leads Banking Sector’s Winning Streak Amidst Broader Market Surge

Goldman Sachs shares extended their winning streak for the fourth consecutive day on Monday, October 9, 2023, although they still trailed behind their yearly peak achieved on November 15th. This upward momentum coincided with a broader market uptick, as both the S&P 500 and Dow Jones indices posted gains of 0.63% and 0.59%, respectively.

In tandem with Goldman Sachs, fellow banking heavyweights Bank of America and Wells Fargo also saw their share prices climb. However, Morgan Stanley diverged from the trend, experiencing a 0.52% decline.

Despite the positive showing, Goldman Sachs’ trading volume on Monday stood at 1.1 million shares, falling short of its 50-day average. This suggests that while the stock price has been on an upward trajectory, it hasn’t been accompanied by a substantial surge in trading activity.

Monday’s performance in the banking sector mirrored broader market trends, with many stocks notching gains in response to favorable market conditions. Nevertheless, the divergent performances among major banks underscore the nuanced dynamics within this sector.

Dow futures steady, Israel-Hamas war in focus

U.S. stock futures were trading in a tight range during Monday’s evening deals, following a positive session for major benchmark averages as oil prices surged after the eruption of the Israel-Hamas war.

By 6:40pm ET (10:40pm GMT) Dow Jones Futures and S&P 500 Futures were steady while Nasdaq 100 Futures ticked 0.1% higher.

In extended deals, Saratoga Investment Corp (NYSE:SAR) added 1.5% after the company reported EPS of $1.08 versus $1.02 expected, with revenues coming in at $35.5 million versus $35.4 million expected.

Ahead in Tuesday’s trade, investors will be closely monitoring NFIB small business optimism, wholesale inventories and trade sales as well as speeches from BosticKashkariWaller and Daly.

Among earnings, companies including PepsiCo Inc (NASDAQ:PEP), Louis Vuitton (OTC:LVMUY), Neogen Corporation (NASDAQ:NEOG) and AZZ Incorporated (NYSE:AZZ) are expected to report quarterly earnings.

Stay ahead of the curve this earnings season with InvestingPro.

During Monday’s regular session, the Dow Jones Industrial Average added 197 points or 0.6% to 33,604.7, the S&P 500 added 27.2 points or 0.6% to 4,335.7 and the NASDAQ Composite gained 52.9 points or 0.4% to 13,484.2.

On the bond markets, United States 10-Year rates were at 4.638%.


Wells Fargo Tunes Down Tesla’s Tune: Lower Price Target & a Pit Stop in Q3

As Tesla revs up for its third-quarter report on October 18th, Wells Fargo is sticking with their Equal Weight rating on the electric car whiz, though they’ve decided to gently tap the brakes on their 12-month price target, downshifting from $265.00 to $260.00. Why the pit stop? Well, Tesla recently announced that its third-quarter deliveries came in about 20,000 vehicles short of the consensus estimate of 435,000, with the blame conveniently placed on a pit crew working on the Model 3. Wells Fargo’s number-crunching engine suggests that, thanks to these fewer deliveries and some price cutting, Tesla’s automotive gross margin for the third quarter is expected to come in at 16.3%, falling behind the consensus pit crew prediction of 17.9%. Furthermore, they’re predicting a 20% drop in third-quarter average pricing compared to its peak, essentially cutting Tesla’s automotive gross profit per unit in half.

To reach its audacious goal of delivering 1.8 million vehicles in fiscal year 2023, Tesla needs to hustle, aiming for about 475,000 deliveries in the fourth quarter. That means revving up the production engines to near-maximum capacity worldwide. While Tesla’s got some potential turbo boosts in the form of Model 3 and Model Y refreshes, as well as the Cybertruck with its staggering 1.9 million preorders, the Wells Fargo pit crew is throwing up a yellow flag, questioning if these factors alone will be enough to secure the checkered flag.

Investing is like a gourmet buffet for your financial future. It’s the art of turning your hard-earned dough into a well-seasoned portfolio that doesn’t just grow, but appreciates in flavor over time. While some people are content with the financial equivalent of a microwave meal, true investors savor the slow-cooked gains, knowing that patience and diversification are the secret sauces to success. So, whether you’re a Wall Street wizard or just a humble admirer of compound interest, remember: in the world of investing, the only thing riskier than a rollercoaster market is missing out on the feast altogether. Bon appétit, money mavens!