Stock market news live updates: Dow falls sharply as Wall Street's big banks report profit drops – Yahoo Finance

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.
"We expect earnings to take the center stage going forward, where reactions to earnings have been getting bigger, while reactions to inflation/FOMC have been waning," Bank of America's Savita Subramanian and Ohsung Kwon wrote in a note Friday.
Global business leaders are gathering in the mountains of Davos, Switzerland, this week for the World Economic Forum. The prospect of a global recession, post-pandemic challenges, climate change, and the crisis in Eastern Europe are poised to top the agenda for the politicians, CEOs, and billionaires in attendance. European Central Bank President Christine Lagarde is among attendees.
The week ahead will also be busy with Fedspeak, with several members of the U.S. central bank set to deliver remarks in speeches throughout the country in coming days.
U.S. Treasury yields ticked higher Tuesday, with the benchmark 10-year note rising roughly 5 basis points to top 3.55%.
Oil rose, with West Texas Intermediate Crude Oil (WTI) futures rising 1.6% to trade above $81 per barrel.
Tuesday's moves come after a long weekend that saw the U.S. stock and bond markets closed on Monday, January 16, in observation of Martin Luther King Jr. Day. On Friday, all three major averages closed out their second consecutive winning week.
The technology-heavy Nasdaq Composite saw an outsized gain of 4.8% for the week, while the S&P 500 and Dow Jones Industrial Average registered their best performances since November, logging weekly advances of 2.7% and 2%, respectively.
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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