Mid-section analysis AOF Wall Street Nasdaq and Dow Jones show a green but depressed market
(AOF) – US markets have turned green. They are driven by the results of the second quarter published by Goldman Sachs and Bank of America, although the interest rate is very low at this time. The National Association of Home Builders (NAHB) housing market index, on the other hand, fell sharply in July, indicating another warming of home builders in the United States. Around 5:30 pm, the Dow Jones index gained 0.42% to 31,420.90 points, while the Nasdaq rose 1.12% to 1,581.15.
The price of Goldman Sachs stood at 302.39 dollars (+ 2.90%), ahead of Bank of America, which rose 0.02% to 32.27 dollars. If the former showed less profit than expected, the latter was disappointed. However, Bank of America accounts have good news, such as a significant increase in interest rates. Two US banks suffered from a decline in their lending and lending operations.
Today’s financial community
The National Association of Home Builders’ (NAHB) housing market index reached 55 points in July, against a consensus of 66 and 67 in June. A sharp drop that, if it stays above the 50 danger zone indicating a positive outlook for real estate, indicates a crash.
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Bank of America
Bank of America’s profits came in lower. In the second quarter, net income fell to $6.2 billion, or 73 cents per share, from $9.2 billion and $1.03 per share, respectively, last year. The FactSet consensus was 75 cents. The bank’s net income rose 5.6% to $22.7 billion, slightly below the market average. However, it was boosted by a 22% jump in net interest income to $22.7 billion due to higher rates and loan growth.
The US airline Delta Air Lines today announced a major order from Boeing worth about $13.5 billion (€13.3 billion) to refurbish its fleet at the Farnborough Airshow in the UK. The planemaker has given 100 copies of its 737 MAX 10 to the carrier. Good news for Boeing, which has been prone to disappointment since the start of the year, including further order delays against its main competitor Airbus.
Goldman Sachs revealed a sharp drop in results for the second quarter due to a sharp decline in its operations in the primary markets. Meanwhile, the well-known American bank reported that group profit fell 48% to 3.79 billion, or 7.73 dollars per share. As with Goldman Sachs, the FactSet consensus is significantly different from the real deal at $6.56. Goldman Sachs’ revenue fell 23% to $11.86 billion, but beat Wall Street’s forecast of $10.78 billion.
A number of newspapers such as the Times have reported that Starbucks is looking for potential buyers to sell its UK business. The group reacted to the issue by saying that it did not carry out a “marketing strategy”. The restaurant and bar chain manages around 1,000 stores in the UK (70% sold by other companies) and employs around 4,000 people.
Elon Musk responded to Twitter’s lawsuit on Friday, saying a Delaware court should deny Twitter’s request to expedite the case. “Solving these questions will require the technical difficulties that have been discovered, including the review and legal analysis of many things”, explains his lawyers when Elon Musk criticized Twitter for its failure to monitor the number of fake accounts, spam and bot accounts.
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