July 2023 Market Insights: Goldman Sachs Earnings & June Housing Trends

Market Highlights for July 19, 2023

As the markets prepare to open, investors should focus on several pivotal developments shaping the financial landscape today.

1. Goldman Sachs and M&T Bank Drive Today's Bank Earnings Reports

Buffalo-based M&T Bank (MTB) surpassed expectations with a stellar profit of $867 million, translating to $5.05 per share, significantly higher than the anticipated $218 million or $1.08 per share. Meanwhile, Goldman Sachs (GS) is set to release its earnings before the market opens, with analysts bracing for weaker results amid warnings of write-downs linked to commercial real estate holdings. Pre-market activity shows M&T Bank’s shares rising by 0.2%, while Goldman Sachs remains steady.

2. Anticipated Decline in June Housing Starts Following May Surge

Following a surprising increase in housing starts in May, economists forecast a slowdown for June, expecting figures to dip to 1.48 million from May’s 1.63 million. The U.S. Census Bureau will release these figures at 8:30 a.m. ET. Additionally, building permits, an indicator of future construction activity, are also predicted to slightly decrease to 1.48 million units in June, down from 1.49 million.

3. Carvana Shares Soar 15% After Debt Reduction Announcement

Carvana (CVNA) advanced its earnings report by two weeks and saw its shares jump 15% in pre-market trading after announcing a successful agreement to cut its total debt by $1.2 billion, lowering its burden from $8.5 billion. Prior to this news, shares had declined approximately 7% in pre-market sessions.

4. AT&T Shares Rise 5% After Pausing Lake Tahoe Cable Removal

Shares of AT&T (T) climbed 5% in pre-market trading following the company’s decision to halt the removal of two lead-sheathed cables in Lake Tahoe. This pause allows for further environmental testing to assess potential contamination risks. CEO John Stankey communicated that these cables constitute less than 10% of AT&T’s infrastructure. Verizon (VZ) shares also gained 4%, reflecting shared environmental responsibilities.

5. UK Inflation Eases More Than Expected in June

The United Kingdom experienced a faster-than-anticipated cooling in inflation, with the annual rate dropping to 7.9% in June, below the forecasted 8.2%. Month-over-month inflation increased by only 0.1%, significantly less than the expected 0.4%, signaling easing price pressures.

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