To The Moon

U.S. stocks closed mixed Tuesday as a shortened but busy week packed with corporate earnings got underway on Wall Street.

The Dow Jones Industrial Average (^DJI) shed nearly 400 points, or around 1.1%, weighed down by bank stocks after Goldman Sachs (GS) posted its largest earnings miss in a decade. The S&P 500 (^GSPC) capped the day down 0.2%, while the technology-heavy Nasdaq Composite (^IXIC) inched up a modest 0.1%.

Goldman Sachs recorded a larger-than-expected 69% decline in profit for the fourth quarter, taking a hit on a substantial fall in dealmaking revenue and a higher provision for credit losses. Shares fell 6.5%.

Morgan Stanley (MS), meanwhile, reported a smaller-than-expected decline in profit. Like its Wall Street peers, the firm's investment banking operations took a big hit, but higher net interest income and a record quarter for its wealth management business helped cushion overall numbers. Shares rose 5.8%.

The reports come after a lackluster round of quarterly updates from rivals late last week.

Earnings reports out of other sectors will also ramp up in the coming days, with United Airlines (UAL) reporting after the close.

Figures from Netflix (NFLX) on Thursday are also in focus. The update is likely to serve as a potential sign of things to come for the tech sector's results, which are set to begin in earnest the following week.

The S&P 500 is expected to report a year-over-year decline in earnings of 3.9% for the fourth quarter, according to data from FactSet Research. This would mark the first year-over-year decline in earnings reported by the index since a 5.7% drop in the third quarter of 2020.

@Daily_Discussion