Posted 1/16/2024, 5:27:37 PM
Stocks Retreat as Earnings Season Disappoints; Fed Hints Rate Cuts Possible if Inflation Stays Low
- US stocks retreated on Tuesday, with the Dow falling 0.4% and S&P 500 shedding 0.2%. Investors still focused on interest rates after weak start to earnings season.
- Goldman Sachs shares rose Tuesday after reporting 51% earnings jump in Q4, but profit fell 24% for full year 2023 amid dealmaking slowdown.
- Morgan Stanley shares dipped over 3% Tuesday after Q4 profit hit by one-time $535M charge, though revenue beat expectations.
- Fed Governor Christopher Waller said Tuesday he believes rates can be cut this year if inflation doesn't rebound, but timing/pace of cuts will depend on data.
- Manufacturing activity in New York state plunged in January to lowest level since May 2020, adding to economic slowdown fears among some investors.