Uncertain Economic Outlook Depresses Market
While Tuesday and early Wednesday saw investors responding positively to market activity, Bernanke’s remarks saw an immediate about-turn, ending the day with all major indexes down by more than one percent. In comparison with the same period last year, Morgan Stanley achieved above the expectation of Wall Street, reporting a quarterly net profit of $1.4 billion as opposed to the $138 million loss of 2009. Net revenue for the financial giant was up 53 percent from 2009 at $7.95 billion. Also in the financial sector, Wells Fargo reported a drop in net profit from $3.2 billion in the second quarter of 2009, to $3.1 billion in this past quarter, which is still above what was expected. Wells Fargo CFO Howard Atkins expressed the firm’s confidence that the positive trend will continue through the rest of the year.
Other major publicly listed companies to beat forecasts include Freeport-McMoRan Copper & Gold and Coca-Cola. In addition to Morgan Stanley, notable Standard & Poor’s 500 components to report increases include Textron, Goodyear and Eaton Corp, with decreases being reported by Yahoo, Tenet Healthcare, Stryker and SLM. In addition to Coca-Cola, Dow components reporting increases include AT&T, 3M and Caterpillar, with decreases being declared by Johnson & Johnson, Bank of America, JP Morgan Chase and Hewlett Packard.