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Dow Drops 200 Points; Goldman Sachs Earnings Exceed Expectations Dow Drops 200 Points; Goldman Sachs Earnings Exceed Expectations

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U.S. equities faced a downward trend this morning, as the Dow Jones index plummeted over 200 points on Tuesday.

As the market opened today, the Dow spiraled down 0.56% to 37,384.20, while the NASDAQ also experienced a 0.69% decline, resting at 14,869.02. The S&P 500 followed suit, dropping 0.53% to 4,758.60.

The communication services sector saw a modest 0.3% increase in shares, while the financial sector suffered a 1.2% decline in trading on Tuesday.

Rocky Terrain for Equities

The financial industry heavyweight, Goldman Sachs Group Inc GS, showcased impressive results, surpassing expectations for its fourth quarter earnings. The bank reported a fourth-quarter 2023 GAAP EPS of $5.48, in contrast to the $3.32 earned in the fourth quarter of 2022, beating the anticipated $3.43. Furthermore, the bank’s fourth quarter 2023 revenue amounted to $11.32 billion, a 7% increase year-over-year and only a 4% decrease sequentially, relative to the expected $9.85 billion.

Stocks Ascend and Plunge

Elevai Labs, Inc. ELAB shares skyrocketed by an astonishing 102% to $3.45. ELEVAI Labs solidified an exclusive worldwide manufacturing agreement and license agreement with INmune Bio, granting ELEVAI a license to utilize INmune’s EMx Technology. Similarly, shares of Phunware, Inc. PHUN surged by 80% to $0.1368. Additionally, Rail Vision Ltd. RVSN witnessed a 39% surge to $1.9322, following a 13% increase on Friday.

Allakos Inc. ALLK shares encountered a staggering 60% decline to $1.21 subsequent to the company’s announcement of topline data from its Phase 2 trial for lirentelimab in atopic dermatitis (ATLAS) and its Phase 2B study in chronic spontaneous urticaria (MAVERICK). Furthermore, shares of Ault Alliance, Inc. AULT plummeted by 24% to $0.0521 post a 3% decline on Friday. Similarly, Applied UV, Inc. AUVI reported a 24% fall to $2.9099 after announcing the receipt of orders in its smart building technologies division.

Commodity Landscape

Within the realms of the commodities markets, oil experienced a 0.5% incline, reaching $73.04, while gold dipped 0.4% to $2,043.30. Furthermore, silver witnessed a 0.7% decline to $23.165, and copper fell by 0.7%, settling at $3.7650 on Tuesday.

Global Tides

On the global front, European shares echoed the subdued sentiment, as the eurozone’s STOXX 600 plummeted 0.7%, London’s FTSE 100 fell 0.5%, and Spain’s IBEX 35 Index descended 1.1%. The German DAX experienced a 0.7% decline, while the French CAC 40 dropped 0.6%, and Italy’s FTSE MIB Index witnessed a 0.7% decline. The ZEW Indicator of Economic Sentiment for Germany exceeded market estimates by increasing 2.4 points to a reading of +15.2 in January. Conversely, the ZEW Indicator of Economic Sentiment for the Eurozone receded by 0.3 points to 22.7 in January. Furthermore, the annual inflation rate in Italy eased to 0.6% in December from 0.7% in November, while German consumer price inflation soared to 3.7% year-over-year in December, relative to November’s 3.2%. In the UK, average weekly earnings, including bonuses, surged by 6.5% year-over-year to GBP 666/week during the three months to November, while the unemployment rate held steady at 4.2%.

Asian Markets Quivering

Asian markets mirrored the global downtrend, as Japan’s Nikkei 225 plummeted by 0.79%, Hong Kong’s Hang Seng Index dropped by 2.16%, and China’s Shanghai Composite Index exhibited a meager 0.27% rise. India’s S&P BSE Sensex faced a 0.27% decline, while producer prices in Japan showcased no growth year-over-year in December, following a 0.3% increase in the prior month.

Economic Alternatives

The NY Empire State Manufacturing Index tumbled to -43.7 in January, marking the lowest reading since May 2020.

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