The US markets closed higher on Tuesday, as earnings season began in full swing. The Dow Jones closed 1.56% higher, the Nasdaq 100 was up by 1.71% while the S&P 500 finished 1.73% higher.
A number of US listed companies such as Citigroup, Morgan Stanley, Walgreens, Wells Fargo, Bank of America, UnitedHealth released their financial results for quarter three with other expected to announce the same in the coming days.
US Markets Major News
Gitlab Listing
Other companies that made headlines include coding platform GitLab which made its debut on the Nasdaq. GitLab opened at $94.25 per share, 22% above the estimated offering price of $77 per share, therefore giving the company a valuation of $13.48 billion against a target of $10 billion.
The company sold 8.42 million shares in its IPO, raising over $800 million in total.
Citigroup’s Q3
Citigroup said on Thursday its revenue for the third quarter of 2021 fell slightly by 1% year-on-year to $17.15 billion. Net income rose by 48% to $4.64 billion.
The lender’s Institutional Clients Group recorded a 4% increase in revenue to $10.79 billion while its consumer banking unit reported a 13% decline to $6.26 billion.
Morgan Stanley Q3
American multinational investment bank Morgan Stanley on Thursday reported its revenue for the third quarter of 2021 which rose 26% to $14.8 billion. Net income was up 37% to $3.7 billion.
Institutional Securities segment revenues rose 22% to $7.5 billion while investment Management revenues were up 38% to $1.5 billion with assets under management more than doubling to $1.5 trillion.
Wealth Management recorded a 22% drop in revenue to $4.7 billion despite adding a record $135 billion in net new assets.
Wells Fargo Q3
Wells Fargo & Co. revenue for the third-quarter fell by 2.6% to $18,8 billion as net income went up 59% to $5.1 billion.
“The actions we’re taking to improve operating effectiveness and financial returns are coming through in our results, in addition to the benefits we’re experiencing from the economic recovery. We recorded a $1.7 billion pre-tax reduction in the allowance for credit losses and had strong equity gains. More importantly, charge-offs were low, net interest income stabilized and period-end loans grew for the first time since first quarter 2020” CEO Charlie Scharf noted in a statement.
LinkedIn Shuts down in China
Microsoft owned LinkedIn will shut down its services in China citing “a significantly more challenging operating environment and greater compliance requirements” in the country.
The company said on Thursday that it will replace the platform with InJobs, a board that will allow users to post and apply for jobs while lacking a social feed.
Bank of America Q3
Bank of America Corporation on Thursday reported a 12% growth in revenue to $22.8 billion in the third of 2021. Net income was up 57% to $7.7 billion.
“Because of the way we run our business, we were able to increase the quarterly dividend by 17% and buy back nearly $10 billion in common stock,” Chief Financial Officer Paul Donofrio said in the press release.
UnitedHealth Q3
UnitedHealth Group released its earnings for the third quarter of 2021 with revenue exceeding estimates to hit $72.3 billion.
The news drove the company’s share price higher to sell for $410.50. The stock is up by more than 15% since the start of the year.
SpaceX in Talks with Airlines to Install Starlink
The CEO of Space Exploration Technologies Corp Elon Musk on Thursday said the company was in talks with airlines about the idea of installing Starlink to provide Internet access across the globe.
Elon recently asked the public to “sign up early to ensure a spot” on Starlink, as its provider SpaceX hopes to serve 500,000 users in 2022.
