Dow Jones Today: Stock Futures Rise as Investors Digest Bank Earnings, Await Inflation Data

Goldman Sachs Leads Dow Gainers on Strong Earnings

58 minutes ago

Goldman Sachs (GS) shares jumped Wednesday morning after the bank reported better-than-expected fourth-quarter results.

The bank reported $4.11 billion in profit on $13.87 billion in revenue, well above the respective $2.89 billion and $12.31 billion that analysts estimated, per Visible Alpha. Goldman registered $2.35 billion in net interest income, above the $2.1 billion expectation.

“I’m encouraged that we have met or exceeded almost all of the targets we set in our strategy to grow the firm five years ago, and as a result, have both grown our revenues by nearly 50% and enhanced the durability of our franchise,” Goldman CEO David Solomon said.

Goldman had topped estimates in each of the first three quarters of fiscal 2024, with a strong stock market and rising fees boosting the firm’s investment banking revenue.

Shares were up more than 5% in recent trading, leading Dow gainers.

–Aaron McDade

Citi Jumps as Bank Swings to Profit, Announces Buyback

1 hr 50 min ago

Citigroup (C) reported fourth-quarter results that exceeded expectations, sending shares sharply higher. 

Citi’s net income for the fourth quarter was $2.86 billion, up from a loss of $1.84 billion a year ago, while diluted earnings per share (EPS) climbed to $1.34 from a loss of $1.16, beating consensus estimates compiled by Visible Alpha.

The bank’s revenue, net of interest expense, rose 12% year-over-year to $19.58 billion, topping estimates. Citi’s cost of credit was $2.59 billion, down 27% from a year earlier, which the bank said helped boost net income.

“2024 was a critical year and our results show our strategy is delivering as intended and driving stronger performance in our businesses,” CEO Jane Fraser said in a release.

Citi also said its board of directors approved a $20 billion stock buyback program that will begin this quarter.

Shares of Citi were up 6% in recent trading.

–Andrew Kessel

Wells Fargo Surges as Earnings Top Estimates

2 hr 26 min ago

Wells Fargo (WFC) shares climbed Wednesday morning after the bank reported fourth-quarter profit and net interest income that topped analysts’ estimates.

The lender reported $5.08 billion in net income for the quarter, up from $3.45 billion last year and above analysts’ expectations. Revenue lagged estimates at $20.38 billion, down from $20.48 billion a year ago.

The bank had been expected to post fourth-quarter net income of $4.83 billion and revenue of $20.53 billion, according to consensus estimates compiled by Visible Alpha.

Net interest income fell to $11.84 billion from $12.77 billion in the fourth quarter of 2023, but that was above the $11.69 billion analysts anticipated.

Shares of Wells Fargo were up more than 5% about 20 minutes after the opening bell. The stock has gained 57% over the past year, far outpacing the S&P 500’s 24% increase over the period.

–Nisha Gopalan

Eli Lilly Price Levels to Watch After Tuesday’s Slide

3 hr 57 min ago

Eli Lilly (LLY) shares could remain under the microscope today after falling sharply on Tuesday as the pharmaceutical giant lowered its 2024 full-year revenue forecast.

While the drugmaker said it anticipates sales of its flagship weight-loss drugs Mounjaro and Zepbound to accelerate as it ramps up production in the first half of this year, it noted that they grew slower than expected in the fourth quarter.

Eli Lilly shares climbed 32% last year but have slumped more than 16% since October after the company reported third quarter sales of the two drugs below Wall Street’s expectations, prompting concerns about moderating demand.

Since falling below the 200-day moving average (MA) in late October last year, Eli Lilly shares have consolidated within a textbook symmetrical triangle.

On Tuesday, the stock staged a decisive breakdown below the pattern’s lower trendline and 50-day MA, opening the door to further short-term downside. Importantly, the move occurred on the highest trading volume day in more than two months, indicating conviction behind the selling.

The stock was up 0.2% at $746.70 in recent premarket trading Wednesday after falling more than 6% yesterday.

Investors should watch key support levels on Eli Lilly’s chart around $720 and $625, while also monitoring important overhead areas near $860 and $965.

Read the full technical analysis piece here.

–Timothy Smith

Stock Index Futures Higher Ahead of Inflation Data

4 hr 50 min ago

Futures tied to the Dow Jones Industrial Average were up 0.4%

S&P 500 futures were also up 0.4%.

Nasdaq 100 futures also added 0.4%.