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Earnings season gives hope for gains on Wall Street

Earnings season gives hope for gains on Wall Street

created Marcin KiepasSEPTEMBER 18, 2022

In the third quarter of this year. Goldman Sachs earned $ 8,25 per share and revenue of $ 11,98 billion. Although these results are worse than those from last year, they turned out to be better than the market forecasts. Analyst consensus was $ 7,75 per share profit and revenue of $ 11,42bn. 

Investors noticed better than expected results. In pre-session trading on Tuesday, Goldman Sachs rose 3,76 percent after Monday's session on Wall Street rose 2,24 percent. up to $ 306,71.

Wall Street Rises

Yesterday, the results for the third quarter of the banks: Bank of America and Bank of New York Mellon were also optimistic. The share price of the former jumped by 6,06% on Monday's session, and the latter by 5,08%, becoming one of the impulses for gains on Wall Street. 

The Monday session in New York ended in an increase DJIA index by 1,86%, S & P500 by 2,65%, a Nasdaq Composite by 3,43% Most of all, however, it significantly improved the moods on the US stock market, giving hope that the second half of October will be marked by increases, which will be driven not only by the booming earnings season, but also by the diminishing fear of interest rate hikes (the market is still pricing-in the rate hike). feet by Fed by 75 bp at the November meeting).

This optimism about Wall Street's end of October gains can also be seen on the US500 daily chart.

US500 Daily_18102022

US500 Daily Chart (S&P 500 CFDs). Source: Tickmill

Thursday's sharp turn from the low in late September / early October, which also marked the second unsuccessful attempt to push the US500 chart below the low in June this year, means a change in the balance of forces. This is initially confirmed by the improvement in the indicators. Now it is only necessary to confirm these demand changes on the chart by breaking above the resistance at 3807,06 points, which will be tantamount to creating a double day pattern and announcing increases even to 4000 points.

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About the Author
Marcin Kiepas
Tickmill UK analyst. Financial markets analyst with 20-year experience, publishing in Polish financial media. He specializes in the foreign exchange market, Polish stock market and macroeconomic data. In his analyzes he combines technical and fundamental analysis. Looking for medium-term trends, examining the impact of macroeconomic data, central banks and geopolitical events on the financial markets.