Goldman Sachs to report, Tesla and Netflix on tap - what's moving markets

investing.com:

Investing.com — Goldman Sachs is on deck to release quarterly earnings that, some analysts fear, could be among the worst in the banking giant's history. Electric carmaker Tesla and streaming group Netflix will also deliver results after the bell. Elsewhere, Microsoft announces the price of its new generative artificial intelligence service in its productivity software.

1. Goldman Sachs to round out bank earnings

Goldman Sachs (NYSE:GS) is set to unveil its latest returns on Wednesday, with some investors bracing for the Wall Street powerhouse to potentially report one of its weakest quarters ever.

A slowdown in stock and bond trading, as well as an expected drop in lucrative investment banking fees, are projected to have weighed heavily on Goldman over the last three months.

Recent results from the banking giant's closest rivals point to the impact of the dearth in dealmaking. On Tuesday, Goldman peer Morgan Stanley's (NYSE:MS) second quarter revenue from sales and trading slipped by more than a fifth.

But analysts worry that Goldman faces other issues; namely, an anticipated write-down worth several hundred million dollars from its purchase of home improvement lending group GreenSky, and losses on its consumer and real estate loan portfolios.

Chief executive David Solomon and other members of Goldman's management team have already flagged that this will be a challenging quarter. But just how bad it will be remains uncertain.

2. Tesla and Netflix ahead

Tesla (NASDAQ:TSLA) and Netflix (NASDAQ:NFLX) are also among the biggest businesses on tap to report results Wednesday as the parade of second quarter earnings gathers speed.

For Tesla, the focus will likely center around the EV giant's gross margin, which analysts