Markets Head Lower After Morgan Stanley Misses on Earnings

Citigroup, one of the other large banks reporting earnings this week, kicked off calendar fourth-quarter earnings season by reporting stronger-than-expected earnings. Citigroup reported $1.61 in profit per share, besting Wall Street expectations of $1.55 per share.

Wells Fargo & Co. finished 2018 by posting a net income of nearly $6.1 billion, or $1.21 in diluted earnings per share.

2018 Year-End Market Turmoil to Continue?

Thus far in January, the markets have rebounded off a December’s doldrums, but some analysts question whether it’s sustainable moving forward. U.S.-China trade negotiations that are ongoing, the government shutdown and concerns over global growth remain headwinds for the markets.

“Upside should now prove limited for global indices, with S&P likely to start to weaken and pullback and any strength would face strong overhead resistance between 2630-40,” said Mark Newton, managing member at Newton Advisors, in a note.

“Indices have moved between 10-15% in the last 15 trading days since Christmas Eve, and have finally reached the 50% retracement levels (or fractionally below) from the decline from September/October,” Newton added. “Structurally this area remains difficult as several lows were made at this area and now offer resistance on this rally.”

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