Dow, S&P 500 eye tepid open as GS slides after quarterly results
By Bansari Mayur Kamdar and Johann M Cherian
(Reuters) -The Dow and the S&P 500 were set for a muted open on Wednesday after Goldman Sachs (NYSE:GS) reported second-quarter results, while investors also assessed strong earnings from a number of smaller banks.
Goldman Sachs eased 1.4% in volatile premarket trading after the Wall Street giant posted a fall in second-quarter profit as it took a writedown tied to its GreenSky business and the investment banking business was hit by lower dealmaking volumes.
Big U.S. lenders rallied on Tuesday after they said higher interest rates had helped boost profits in the second quarter.
«We've got a lot of the majors out of the way and they've been pretty good so far. This (Goldman) is probably the first hiccup,» said Dennis Dick, market structure analyst at Triple D Trading.
The S&P 500 banking index has fallen 3.4% this year in the aftermath of a banking crisis that took down three lenders and pummeled the regional banking sector.
The benchmark S&P 500 index has notched an 18.6% gain in the same period.
Among other lenders, Citizens Financial (NYSE:CFG) and M&T Bank (NYSE:MTB) beat Wall Street estimates for second-quarter profit, benefiting from the U.S. Federal Reserve's rapid rate hikes.
Citizens Financial edged lower, while M&T Bank rose 2.4%.
At 8:39 a.m. ET, Dow e-minis were up 2 points, or 0.01%, S&P 500 e-minis were up 1 points, or 0.02%, and Nasdaq 100 e-minis were up 31.25 points, or 0.2%.
Carvana jumped 38% after the troubled used-car retailer struck a deal with most of its term bondholders to cut its outstanding debt by more than $1 billion.
Tesla (NASDAQ:TSLA) rose 0.7% ahead of results expected after the bell. Its strategy to boost sales through price cuts is likely to
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