News Worms
News Worms


Goldman whiffs in Wall Street bond rebound that boosts peers

Goldman whiffs in Wall Street bond rebound that boosts peers

Despite easy comparisons with last year's abysmal first quarter, when stocks and bonds had slumped amid corporate skittishness over the economy, Goldman on Tuesday reported $1.69 billion in revenue from trading in bonds, currencies, and commodities - a paltry 1-percent increase.

The surprise results contrast with reports from Goldman Sachs's three bigger competitors. That result beat the average estimate of $5.09 a share in a FactSet survey.

Companywide revenue rose 27% to $8.03 billion, compared with the $8.33 billion average estimate of analysts surveyed by Bloomberg.

Goldman shares have fallen 5.5 percent since the beginning of the year, while the Standard & Poor's 500 index has climbed almost 5 percent. Douglass Winthrop Advisors LLC now owns 8,001 shares of the investment management company's stock worth $1,290,000 after buying an additional 26 shares in the last quarter. Goldman saw about a 2% in decline in trading revenue-a result that management blamed on a calmer market that produced less trading.

People familiar with the business said a combination of outdated trading technology, a late effort to court quantitative funds and overall fee pressure on the bank's key clients has blunted Goldman's edge. Merger fees fell 2% to $756 million, but stronger underwriting, together up 37%, more than made up the difference. During the same quarter in the prior year, the company earned $4.68 EPS.

However, net revenues in Institutional Client Services fell 2% to $3.36 billion, and were down 7% on a sequential basis.

Whalerock Point Partners LLC continued to hold its stake in Goldman Sachs Group Inc (NYSE:GS) during the fourth quarter, according to its most recent filing with the SEC.

After that first quarter, Chief Financial Officer Harvey Schwartz predicted: "We don't believe negative interest rates are going to be here forever".

Goldman's shares fell as much as 4 percent to $217.13 in the early trading in NY.

Goldman has historically relied more on trading than other big banks, but has been trying to shift to stable businesses such as investment management. Goldman's chief rival Morgan Stanley will report on Wednesday.

Revenue in Goldman's investment-banking division, which helps companies merge and raise capital, rose 16% to $1.7 billion. Likewise, JPMorgan reported revenue of $4.2 billion in its Fixed Income Markets breakout, a 17% improvement compared to the same period a year ago. Vetr lowered Goldman Sachs Group from a "hold" rating to a "sell" rating and set a $219.84 target price on the stock.in a report on Monday, December 26th.

follow

editors' picks

April 19, 2017
Memphis coach Fizdale blasts 'unprofessional' officiating
Memphis cut that 26-point deficit down to five midway through the final frame, but ultimately ran out of gas. But will it go down as an all-time great? San Antonio had a better start than in Game 1.

April 18, 2017
Two Detroit Cops Shot and Wounded; Resident May Have Been Protecting Home
Redd says his son didn't know police had been called and was still shaken up from an attempted break-in last week. Detroit police say two officers have been wounded in the shooting while responding to a reported burglary.

April 18, 2017
When, What and Where of the Windows 10 Creators Update
Of course, we can expect to see upgrades later in the year but the Surface Pro 5 isn't making its debut on May 2. Comment and let us know if you are looking forward to Microsoft's announcements during its upcoming May event.

April 18, 2017
Democrats: Solid opposition to Trump, but what comes next?
Trump said he believed that withholding the payments for insurers would bring Democrats to the table on negotiations. The payments are used to help poorer people in Obamacare afford copays and other cost sharing for medical services.

April 18, 2017
More than 21000 expected at Trump's first Easter Egg Roll
The Martin Family Circus, a six-person family band from Nashville, is set to perform at the event, according to Politico . Anna Cristina Niceta Lloyd auditioned for the job of White House social secretary and may not have known it.

April 18, 2017
Check Out Kim And Kanye's Beautiful Family Easter Image
The problem is Kim Kardashian and Kanye West can not agree on anything including the process that is involved for surrogacy. According to People , West was hospitalized in November after he suffered from exhaustion and sleep deprivation.

April 18, 2017
Iran's president resisters to run in May elections
Several former ministers and hardline former president Mahmoud Ahmadinejad are among those who have registered. The last similar turnout was Iran's 2005 election, which saw more than 1,000 register.

April 18, 2017
Ousted S. Korean President indicted for corruption
Critics have accused the detention centre of giving Ms Park preferential treatment. South Korea's biggest conglomerate has already been drawn into the inquiry.

April 18, 2017
Shark kills 17-year-old surfer in southern Australia
Wylie Bay Beach will be closed until further notice and the Department of Fisheries will spend Tuesday patrolling the beach. One month earlier, Ben Gerring, 29, died after having his leg severed by a great white shark at Falcon Beach.

April 18, 2017
Drug Take Back Day is April 29
Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.