Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

US stock markets enter correction, investment bank profits grow

The US stock market is officially in a technical correction with all three benchmarks falling again overnight.

The Dow Jones underperformed once again, down 1.0%, the S&P 500 down the same and the Nasdaq dropping 1.1%.

The key driver was another day of reporting season dominated by the investment banks, which make up a large portion of the index.

Bank of America shows strength

Bank of America (NYSE: BAC) was the highlight, reporting a 29% increase in profit on a 10% increase in revenue.

Most importantly, net interest income was significant higher as both loans and deposits continued to surge.

Consumer banking grew earnings by 8%, and wealth management income hit a record after adding 16%. Bank of America shares were up 0.4%.

Morgan Stanley’s earnings beat

Morgan Stanley (NYSE: MS) also beat estimates with profit up 10%, as the investment bank benefitted from a surge in acquisition and trading activity. Morgan Stanley shares finished the session 1.9% higher.

Proctor and Gamble upgrades

Proctor & Gamble (NYSE: PG) gained 3.4% as the maker of Gilette razors and other consumer brands reported a 6% organic increase in sales and upgraded earnings expectations for 2022.

In a worrying sign, management warned of significant cost headwinds, including US$2.3 billion in input costs and US$300 million in freight.

Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is set to buck the negative lead from US markets to edge higher this morning. For a round-up of the latest news, check out my ASX 200 morning report.

The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

In this free report, we outline the key principles that determine all of the portfolio construction and investment decisions of Wattle Partners. Collated over decades, this paper should be seen as a work-in-progress, constantly under review in light of the ever-evolving nature of markets. 

You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.


At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Powered by

Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

Skip to content