US stock index futures are trading lower, heralding a sub-par reopening for Wall Street after yesterday’s holiday shutdown.
In the pre-market Goldman Sachs retreats (-2.4%) while Morgan Stanley reverses course (+1.9%) after having published the respective quarterly reports.
Notably, Goldman Sachs reported earnings per share of $3.32 in the fourth quarter of 2022, versus $5.56 by economist consensus. Revenue fell 16.2% to $10.59 billion versus an estimated $10.76 billion. Focus on Goldman Sachs provisions made to address the risk of an increase in NPLs (non-performing loans), which nearly tripled in the fourth quarter to $972 million from $344 million previously.
Morgan Stanley reported better-than-expected earnings and revenue, though provisions for loan losses, NPLs — non-performing loans — increased to $87 million from $5 million in the prior year’s fourth quarter.
Traders will continue to monitor corporate earnings to gauge their expectations on the US economy and possible moves by the Federal Reserve. Focus was also on speeches by some central bank officials scheduled from the Davos forum, while BlackRock Vice Chairman Philipp Hildebrand said he did not see any chance of monetary policy easing this year.
The dollar remains close to its lowest since April, with the euro/dollar at 1.084, while the 10-year Treasury yield is up to 3.57%.
From the macro agenda, we note the clear worsening of the Empire State Manufacturing index of New York, down to -32.9 points in January.