January 17, 2023
Good morning,
It looks to be a quiet start to the holiday-shortened week, with a lot of investor attention directed to the World Economic Forum in Davos, Switzerland. On the home front, we did get more bank earnings this morning. Goldman Sachs (GS) came in light and is down -1.5% pre-market open and Morgan Stanley (MS) beat estimates and is up +1.5% pre-market. The market seems to be interpreting the two earnings releases as a wash (offsetting one another), and Futures are off small -.30%, precisely where they were before the GS/MS earnings at 7:30am ET.
Markets put in what appeared to be better than expected performance last week (see chart below). International stocks, led by Emerging Markets, continue to outperform the domestic kind, bond yields continue to fall (prices rise) and even commodities were up and recaptured the losses suffered there earlier in the month. We’ll take it but we will not get too excited knowing all-asset rallies are not typically long-lasting.
Be well,
Mike