Stock market today: S&P 500 holds near record high with big bank earnings in focus

Published On Oct 15, 2024, 11:08 AM

US stocks remained stable with the Dow Jones dropping about 0.6% primarily due to a downturn in UnitedHealth Group's shares after disappointing profit guidance. The S&P 500 remained near record highs, buoyed by strong earnings from major banks like Goldman Sachs and Bank of America, which reported substantial profit increases due to stronger deal-making and investment banking activities. Oil prices fell over 4% as concerns about escalating tensions in the Middle East eased, with reports suggesting Israel would not target Iran's oil facilities. Walgreens planned to close 1,200 stores, leading to a nearly 10% rise in its shares amidst reorganization efforts. Overall, the earnings season is expected to reveal further surprises while the market remains vigilant about geopolitical tensions and economic forecasts.

Stock Forecasts

Goldman Sachs showed strong earnings growth and increased investor confidence due to a resurgence in deal-making. This points towards a positive outlook for the banking sector, signaling strength and potential for future growth in financial stocks.

Bank of America also reported strong earnings which may suggest resilience in the banking sector. It follows the trend of strong financial performance from major banks, likely indicating bullish signals for BAC shares following its earnings releases.

Walgreens is restructuring with plans to close numerous locations, which led to a significant rise in its stock price. This move could stabilize operations and improve profitability in the long run, giving it a positive forecast despite current challenges.

With oil prices falling due to eased geopolitical fears and oversupply concerns from the IEA, stocks related to the energy sector may experience downward pressure in the short term, suggesting a negative outlook for oil-related investments.

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The investment bank earned more than expected in the latest quarter, a theme for other big banks, too.

Walgreens announced that it will close about 1,200 stores over the next three years, with 500 shuttering as early as next year. It's part of the company's turnaround effort.

Goldman Sachs third-quarter profits rose 45% from a year ago as a rise in dealmaking lifted the Wall Street giant.