Wall Street added its third consecutive earnings session against all odds. The Dow Jones added 0.7% to 24,370 points. The same percentage was recorded on Nasdaq and placed the index with 7,084 points. The S & P for its part, it was a tad further and gained 0.8% to close at 2,635 points.
Investors are about to bid farewell to a week marked by the start of the business results season, with the big bank as the protagonist. Citigroup, Wells Fargo, JP Morgan and above all, Goldman Sachs, have resisted on the stock market some presentations that, in general terms, have disappointed by the weak revenues recorded during the fourth quarter of 2018.
Today was the turn of Morgan Stanley and the punishment is being severe for the bank. It closed at 42.5 dollars after losing 4.4% and after disappointing the market with its Quarterly income by trading, that remained in 1,900 million dollars in the case of variable income, against the 2,040 million that investors anticipated. For your Fixed income business, the profit fell 30% to 564 million, well below the 800 million dollars anticipated by the consensus.
The financial sector is also pressured by the declines that the industry is registering in Europe, after which Société Générale announces that its benefit will be less than expected.
In the results section the market waited until the Closing session on Wall Street to learn about Netflix accounts, of the most anticipated after the difficult end of the year that the great technological values registered on the stock market. The titles of the company, which has just announced the highest rate increase in its history, managed to close with an advance of 0.5%. However, its report of results was digested with significant losses in the market after hours. Netflix announced that it had added 8.8 million new customers in the fourth quarter, beating forecasts. The net profit of the company was 134 million and its income of 4,190 million dollars, lower than anticipated.
Investors also stay tuned for news about the closure of Government in the USA, that this Thursday marks the 27th day, something that adds more doubts about the impact that the situation will have on the economic growth of the first quarter in the country.
"The sector rotation continues to which we are attending in the last sessions shows that the volume in the markets is being generated basically by the traders, with the final investors adopting a much more prudent stance, waiting for the political and economic scenario to be clarified somewhat, according to Link Securities.