News

 (For a Reuters live blog on U.S., UK and European stock
markets, click [LIVE/] or type LIVE/ in a news window.)

        * 
      Goldman Sachs profit climbs, traders ride market rebound 
    

        * 
      Morgan Stanley profit falls on one-time charges
    

        * 
      Tesla dips as Musk seeks 25% voting control 
    

        * 
      Apple slips after offering rare iPhone discounts in China
    

        * 
      Futures down: Dow 0.26%, S&P 0.36%, Nasdaq 0.39% 
    

  
 (Updated at 8:48 a.m. ET/1348 GMT)
    By Johann M  Cherian and Ankika Biswas
       Jan 16 (Reuters) - 
    Wall Street's main indexes were on course for a lower open
on Tuesday, as Tesla and Apple weighed, while investors gauged
mixed earnings reports from Goldman Sachs and Morgan Stanley for
insights into the health of capital markets and dealmaking.
  
        
    Tesla  shed 1.6% in premarket trading after CEO Elon
Musk said he would be uncomfortable growing the automaker to be
a leader in artificial intelligence and robotics without having
at least 25% voting control of the company.
    Apple  fell 1.8% after offering rare discounts on
its iPhones in China on competition pressures, just days after
it was overtaken by Microsoft  as the world's most
valuable firm.
    On the fourth-quarter earnings front, Goldman Sachs 
climbed 0.4% after reporting a 51% rise in profit, as its
traders capitalized on a nascent market recovery and its asset
and wealth business revenue rose. However, Morgan Stanley 
slipped 2.5% as its profit declined, but revenue surpassed
expectations, helped by a rebound in dealmaking activity.
        "Morgan Stanley, Goldman Sachs tend to service the
wealthier high-net-worth clients, and have much less loan loss
reserves," said Paul Nolte, senior wealth adviser and market
strategist at Murphy & Sylvest.
  
        "Overall, I think the banks (results) came in pretty
good shape and the banking sector is pretty well-capitalized at
this point."
  
    Their earnings follow lower profits reported by Wells Fargo
, Bank of America , Citigroup  and JPMorgan
Chase  on Friday, as lenders grapple with special
charges, job cuts and souring consumer loans.
    Of the S&P 500 firms that reported fourth-quarter results
till Friday, 93.1% have beaten earnings expectations, according
to LSEG data. 
        In the previous quarter, 82% had surpassed earnings
estimates overall, while it was 68.1% in the fourth-quarter last
year. 
  
    Wall Street finished the previous week higher as investors
continue to price in an around 70% chance of the Federal Reserve
delivering a 25-basis-point rate cut in March - despite mixed
inflation data and a lack of supporting voices among
policymakers for a quick start to monetary policy easing.
    UBS Global Research boosted its 2024 year-end target for the
S&P 500 <.SPX> on Tuesday to 5,150, representing a nearly 8%
upside from current levels. 
        Despite briefly surpassing its previous record closing
high last week, the benchmark index has faced resistance to
breaching its highest intra-day level, hit in January 2022.
    Investors will parse Fed Board Governor Christopher Waller's
remarks during the day, after Atlanta Fed President Raphael
Bostic, a voting member this year, said inflation could
"see-saw" if policymakers cut rates too soon.
     At 8:48 a.m. ET, Dow e-minis <1YMcv1> were down 99 points,
or 0.26%, S&P 500 e-minis  were down 17.5 points, or
0.36%, and Nasdaq 100 e-minis  were down 65.5 points, or
0.39%.
    Dow-component Boeing  declined 2.4% as the Federal
Aviation Administration extended the grounding of its 737 MAX 9
airplanes indefinitely, and brokerage Wells Fargo downgraded the
stock to "equal weight" from "overweight".
    Donald Trump-linked stocks SPAC Digital World Acquisition
Corp  and Phunware  jumped 5.2% and 63.5%,
respectively, after the former U.S. president won resoundingly
in the first 2024 Republican presidential contest in Iowa on
Monday.
        
    Applied Digital
      slumped 17.1% after the data-center services
provider posted downbeat second-quarter revenue.

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S&P 2024 journey    https://tmsnrt.rs/3vE7PnH
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 (Reporting by Johann M Cherian and Ankika Biswas in Bengaluru;
Editing by Pooja Desai)
 ((johann.mcherian@thomsonreuters.com;))

Keywords: USA STOCKS/ (UPDATE 2)

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