Stock Market

Dow, S&P 500 futures hold near record highs with big bank earnings in focus

October 15, 2024
4 Mins Read


US stock futures held steady on Tuesday after clinching record highs, as investors assessed a second wave of earnings from big Wall Street banks and oil prices fell amid ebbing concerns about Israeli retaliation.

Dow Jones Industrial Average futures (YM=F) were little changed on the heels of closing above 43,000 for the first time. S&P 500 futures (ES=F) hovered near Monday’s new all-time high, while contracts on the tech-heavy Nasdaq 100 (NQ=F) were similarly flat.

Before the bell, Goldman Sachs (GS) reported a 45% surge in third quarter profit from a year ago, thanks to a rise in dealmaking. Meanwhile, Bank of America‘s (BAC) posted an earnings beat amid its own outperformance in investment banking.

Shares in Goldman and BofA rose 3% and 1.5% in premarket, respectively, as the market welcomed the signs of resilience. Similar strength in Friday’s results from big bank peers lifted optimism that the economy can nail a “soft landing.”

As the rush of earnings starts to broaden out, hopes are for further positive surprises in what some on Wall Street suspect could be a tricky season. Shares in Walgreens Boots Alliance (WBA) climbed 7% on the heels of its plan to shut 1,200 stores over three years, as the pharmacy chain pursues a turnaround.

Tuesday’s docket also brings reports from Charles Schwab (SCHW), Johnson & Johnson (JNJ), and UnitedHealth Group (UNH), among others.

Meanwhile, oil prices tumbled over 4% after a report that Israel is prepared to refrain from bombarding Iran’s crude and nuclear facilities in its response to an attack two weeks ago. West Texas Intermediate crude futures (CL=F) sank to just above $70 a barrel, while Brent crude futures (BZ=F) fell to near $74 following the Washington Post report.

In chipmaker stocks, Nvidia (NVDA) shares edged lower in premarket, slipping back from their freshly minted high. The US is looking at restricting sales of AI chips to specific countries by the likes of Nvidia and AMD (AMD), Bloomberg reported.

Live3 updates

  • Earnings roundup: Big banks lift market, healthcare posts mixed results

    A fresh batch of bank earnings rolled in Tuesday morning, with strong quarterly results from Goldman Sachs (GS), Charles Schwab (SCHW), Bank of America (BAC), Citigroup (C), PNC (PNC) and State Street (STT) lifting the market.

    Here are some of the highlights:

    • Goldman Sachs rose 2.8% pre-market after reporting a 45% growth in profits from last year thanks to surge in dealmaking. The firm posted third-quarter adjusted earnings per share of $8.40 versus the $7.21 expected, according to Bloomberg consensus data. Yahoo Finance’s David Hollerith has that story.

    • Schwab saw the biggest premarket rally of the batch, rising 9.6% after it posted third-quarter adjusted EPS of $0.77 versus the $0.75 expected.

    • Citigroup climbed 2.2% after reporting EPS of $1.53 versus the $1.31 expected.

    • BofA jumped 2.1% before the bell, after reporting EPS of $0.81 versus the $0.76 expected.

    Healthcare stocks moved in different directions following mixed results. Here’s a look:

    • Walgreens (WBA) rose 4.5% premarket after the pharmacy chain reported fiscal fourth-quarter adjusted earnings per share of $0.39, ahead of the $0.36 expected. The company said it plans to close 1,200 stores in attempt to reverse its struggles.

    • Johnson & Johnson (JNJ) fell 1% after lowering its full-year adjusted EPS guidance. Still, the pharmaceutical giant’s third-quarter adjusted EPS of $2.42 reported Tuesday beat the $2.19 expected.

    • UnitedHealth Group (UNH) fell 3.5% after lowering the top end of its full-year profit outlook. However, the insurance behemoth’s adjusted EPS for the third quarter of $7.15 beat Wall Street’s expectations of $6.99 per share.

  • Walgreens continues to look like a sick retailer

    Not to be outdone by Big Lots and True Value recently announcing they were going bankrupt, Walgreens (WBA) is back in focus today with its now-normal dose of bad news.

    The drugstore chain said this morning it will close 1,200 stores over the next three years. That’s a huge number, one that says a lot about the company’s struggles the last two years.

    These numbers from Yahoo Finance shed further light on Walgreens’ problems:

    • Walgreens market cap: $7.7 billion

    • CVS Health (CVS): $85 billion

    • Walmart (WMT): $645 billion

  • The big banks cleaning up in investment banking again

    Another big morning for the banks on the investment banking front.

    Goldman Sachs (GS) delivered a 20% increase in its investment banking fees in the third quarter. Bank of America (BAC) also notched a 20% increase. Citi’s (C) investment banking revenue grew 31%.

    Last wee,k JPMorgan (JPM) showed a 31% year-on-year increase.

    Year-end advisory boom ahead of the November election as CEOs plot out their next five years? Could be. But could also be a lot of companies preparing to IPO in 2025 amid near-record markets and the prospect of lower interest rates.



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