By Liz Moyer
Investing.com — U.S. stocks are falling to start a new week after Goldman Sachs posted worse-than-expected quarterly results on rising costs and a slump in deal activity.
Wall Street returned from a long holiday weekend in the U.S. with a somber mood set by weak economic data out of China.
Then Goldman Sachs Group Inc (NYSE:GS) released earnings, reporting a 66% drop in profit from the last quarter of 2021 and a 16% drop in revenue. Rising costs and a bigger provision for credit losses weighed on results. Investment banking fees fell nearly 50%. Shares were down 6.8%.
Regional banks and other financial services companies will continue to report this week but the results from Goldman and Morgan Stanley round out the big firms and put the focus on more S&P 500 companies yet to report, including Netflix Inc (NASDAQ:NFLX) later this week.
Analysts expect corporate earnings from the S&P 500 will drop this quarter. This week also brings reports on retail sales and the Federal Reserve’s Beige Book, which is a periodic economic survey of the central bank’s regional banks.