|Bid||213.14 x 1100|
|Ask||213.30 x 800|
|Day's Range||214.45 - 217.33|
|52 Week Range||151.70 - 245.08|
|Beta (3Y Monthly)||1.32|
|PE Ratio (TTM)||8.90|
|Earnings Date||Oct 15, 2019|
|Forward Dividend & Yield||3.40 (1.61%)|
|1y Target Est||231.38|
Stocks were little changed around market open, with equities paring gains from early trading after investors embraced stronger-than-expected earnings results Tuesday morning from several companies across sectors.
Citigroup beat estimates with some help from its consumer cards business and a trading platform's IPO, but can other big banks rely on the same help in their earnings this week?
Goldman Sachs (GS) posted better-than-expected second-quarter results on Tuesday. The bank’s revenue and EPS topped Wall Street’s estimates.
(Bloomberg) -- Goldman Sachs Group Inc.’s trading division offered investors something its rivals couldn’t: a bright spot.The firm’s stock traders delivered a surprise revenue increase, driving Goldman’s securities unit to a smaller decline than analysts had predicted for the second quarter. Citigroup Inc. and JPMorgan Chase & Co., which announced results earlier, reported bigger-than-anticipated drops from their trading desks.Wall Street executives had warned that a slump in client activity amid trade disputes and other geopolitical risks would erode revenue from trading during the quarter. Goldman executives said their equities unit countered that by grabbing some share from weaker rivals and finally seeing dividends from years of upgrading its electronic trading systems.“The performance really was across the franchise, it was throughout derivatives and cash,” Chief Executive Officer David Solomon said on a call with analysts. “Given the market dynamics broadly, there is some sense of consolidating share and I think we’ve seen the benefit of that.”Deutsche Bank AG was losing some client assets even before it announced this month that it’s exiting the equities-trading business. Investors will be looking to see if Morgan Stanley, which has held the mantle of the top equity-trading franchise on Wall Street, also gained. The firm reports earnings on Thursday and analysts have been forecasting an 8% drop. Shares of Goldman Sachs climbed 1.2% at 11:48 a.m in New York, the fourth-best performance in the 68-company S&P 500 Financials Index. The stock is up 28% this year, putting it on track for its best annual gain in more than five years.Second-quarter trading revenue was $3.48 billion, topping the $3.37 billion average estimate by analysts in a Bloomberg survey. The equities jump masked some of the weakness in fixed-income trading, which was driven by lower revenues in rates, currencies and credit. The commodities unit, which has undergone a number of personnel changes, helped offset some of the weakness in other parts of the fixed-income business.Fees from helping companies borrow slumped 20% to $605 million, reflecting less business in the investment-grade and leveraged-finance markets. Its equity-underwriting group brought in $482 million, aided by Goldman’s role in public stock offerings for Silicon Valley heavyweights, including ride-hailing giant Uber Technologies Inc. and Slack Technologies Inc., a provider of workplace chat software.Goldman, which consolidates its firmwide investing and lending activities into one reporting line, posted $2.53 billion in that division, higher than the $1.98 billion estimate of seven analysts compiled by Bloomberg. That was largely due to gains of $500 million from investments in companies that went public during the quarter, including Uber and Tradeweb Markets Inc.Falling RatesGoldman’s recent foray into consumer banking also has prompted it to heed falling rates. In the second quarter, the firm cut the amount of interest it pays depositors with online savings accounts. Banks typically try to maximize the margin between what they pay for deposits and what they earn from making loans.Goldman also made its biggest acquisition in about two decades with the purchase of a wealth manager to help with its expansion beyond catering to just ultra-wealthy individuals. Its investment-management division is the only place where the firm posted a much bigger drop than expectations, despite an increase in assets-under supervision.Last month, Goldman Sachs passed the Federal Reserve’s annual stress test. The exam was easier on capital-markets businesses than in previous years, allowing the firm to increase dividends and share repurchases. It’s a reversal from 2018, when the regulator curtailed the bank’s ability to boost payouts.Other HighlightsEquities revenue at $2.01 billion was the second-highest for a quarter in four yearsAll elements of investment banking declined in the second quarter from a year earlier, led by a 20% drop in debt underwritingEarnings per share of $5.81 topped the average estimate of $4.93Provision for credit losses dropped 9% to $214 million(Adds CEO quote in fourth paragraph.)\--With assistance from David Scheer and Lananh Nguyen.To contact the reporter on this story: Sridhar Natarajan in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Steve DicksonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Heading into this earnings cycle for the biggest U.S. banks, analysts were already plenty worried about net interest income, which is how much the firms make from customers’ loan payments compared with what they pay on deposits. After all, long-term interest rates have plummeted since the end of last year amid signs of slowing global growth and the Federal Reserve indicating it would soon be cutting its benchmark lending rate.It turns out they weren’t quite concerned enough.On Monday, Citigroup Inc. disclosed a net interest margin that disappointed analysts, which raised doubts that JPMorgan Chase & Co. and Wells Fargo & Co. could meet expectations. That’s precisely what happened: JPMorgan, the largest U.S. bank, cut its full-year outlook for net interest income by $500 million. At Wells Fargo, which already lowered its net interest income guidance for the year in April, it fell 4% to $12.1 billion, below even the lowest estimate.JPMorgan Chief Executive Officer Jamie Dimon, in his typical style, brushed off the revised net interest income estimate of $57.5 billion. It could be higher or lower depending on how many times the Fed lowers interest rates (the bank was expecting no cuts during the last round of earnings). Net interest income “is like the wind blowing” Dimon insisted, adding that it’s more useful to focus on long-term measures like the number of accounts and deposit growth.That may be, but it matters to investors when the wind is blowing firmly in one direction. When pressed on a conference call with analysts, JPMorgan Chief Financial Officer Jennifer Piepszak described a range of outcomes that could have the Fed dropping interest rates from one to three times in 2019. If the central bank cuts more than once, net interest income could possibly fall to below $57.5 billion, she said.In more normal times, the Fed beginning a cycle of monetary easing wouldn’t be too painful for banks because they could just lower short-term deposit rates in tandem with long-term rates. But these are far from normal times. Chase Premier Savings interest rates are still next to nothing, for example, just like other big institutions. Simply put, banks got away with keeping deposit rates near zero in recent years because consumers became accustomed to getting paid nothing on their savings in the wake of the financial crisis. That led to blockbuster profits as benchmark U.S. Treasury yields rose to multi-year highs, which in turn boosted the amount earned on loans. But that leaves less flexibility on the way down.It’s worth reiterating this point because the Treasury yield curve is often seen as a clear-cut way to gauge the health of banks, and it steepened recently after Fed officials made clear their plan to lower interest rates later this month. But when deposit rates are far more sticky near zero than the fed funds rate, it all comes down to long-term yields. That means margins are compressing fast.Wells Fargo, for its part, is apparently feeling the squeeze on both sides. The drop in net interest margin from the prior quarter was due to “balance sheet mix and repricing, including the impacts of higher deposit costs and the lower interest rate environment,” the bank said in its statement.Of course, it’s not all bad news for banks if interest rates are falling, provided that the Fed successfully prolongs the longest economic expansion on record. As of now, the consumer remains steadfastly strong: On Tuesday, June retail sales showed a 0.4% monthly gain, easily beating estimates for a 0.2% advance.Earnings from JPMorgan and Wells Fargo tell the same story. JPMorgan’s consumer and community banking unit generated $4.2 billion in net income in the second quarter, a 22% increase compared with the same period in 2018. Wells Fargo’s second-quarter provision for credit losses was just $503 million, compared with estimates for about $773 million, in a signal that it expects resiliency from its clients in the months ahead.Still, this round of bank earnings shows there are few easy-money opportunities for these Wall Street behemoths. Just as they’ve shown they can’t count on traders to deliver large profits when central banks are suppressing volatility (perhaps with the exception of Goldman Sachs Group Inc.), they’re also going to have to prepare for a world awash in lower interest rates.To contact the author of this story: Brian Chappatta at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
JPMorgan reported better-than-expected second-quarter earnings early Tuesday, helped by an income tax boost. Goldman Sachs and Wells Fargo also beat.
In contrast to Morgan Stanley’s view, J.P. Morgan (JPM) upped its price forecast for the S&P; 500 (SPY) from 3,000 to 3,200 on July 15.
Shares of Goldman Sachs Group Inc. surged 2.3% in morning trading after big second-quarter profit and revenue beats, with the price gain enough to keep the Dow Jones Industrial Average in positive territory. The stock rose $4.88, which would add about 33 points to the Dow's price, which is up 7 points. For the other Dow earnings reporters, J.P. Morgan Chase & Co.'s stock slipped 41 cents, or 0.4%, and Johnson & Johnson shares gave up $1.60, or 1.2%; combined, those declines would shave about 14 points off the Dow's price.
Goldman’s increase, which boosts the quarterly payout nearly 50% to $1.25 a share from 85 cents, was expected. After the bank received approval from the Federal Reserve on its capital plan on June 27, Goldman announced what it is authorized to spend on share buybacks and dividends. Goldman was one of 18 banks subject to this year’s Comprehensive Capital Analysis and Review (CCAR), which seeks to determine whether banks have adequate capital levels.
Stocks opened to thin losses Tuesday. Goldman Sachs and Johnsoin & Johnson split the Dow Jones index, ahead of a busy day for FANG stocks on Capitol Hill.
Credit Suisse has hired Hazem Shawki, a Goldman Sachs banker, as its new head of its Middle East, Turkey and Africa investment banking and capital markets division, according to an internal memo seen by Reuters. Shawki will join the Swiss bank in October after a total of 17 years in two periods with Goldman Sachs, the memo said. Shawki's last role at Goldman was head of investment banking Middle East and North Africa (MENA).
Stocks got off to a slightly lower start Tuesday as investors digested a stream of earnings reports, including results from Dow components Johnson & Johnson and Goldman Sachs Group Inc. . The Dow Jones Industrial Average fell around 7 points, or less than 0.1%, to 27,352, while the S&P 500 was off 0.1% at 3,011.12. The Nasdaq Composite fell 0.1% to 8,245.28. All three major indexes eked out record finished in subdued trading on Monday. Shares of Goldman Sachs were up 0.9%, while Johnson & Johnson shares fell 1.7%. Both companies topped earnings forecasts.
Goldman Sachs' (GS) Q2 results reflect solid investing and lending revenues and expense management, partly muted by underwriting business and fixed income trading activities underperformance.
Goldman (GS) delivered earnings and revenue surprises of 22.83% and 9.24%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
(GS) delivered far better second-quarter revenue and earnings than expected, sending its stock 1.2% higher in premarket trading. Goldman’s (ticker: GS) strong results Tuesday morning come after (C) (C) began the profit-reporting season for banks by beating analysts’ expectations on Monday. After dropping more than 30% in the fourth quarter of 2018 due to economic and trade concerns that hit most financial stocks, as well as the firm’s involvement in the Malaysian 1MDB scandal, Goldman shares have risen almost 27% so far in 2019.
The bank said equities trading revenue increased by 6 percent from a year ago to $2 billion, the second highest in four years. Goldman also said it benefited from higher revenues in client execution including an improved performance in cash products and derivatives. The bank said that reflected significantly lower net revenue from interest rate products and currencies.