Proactive Investors - Goldman Sachs (NYSE:GS) shares took a hit Tuesday on weaker-than-expected revenue and fixed-income trading, but the “vampire squid’s” struggles haven’t infected the rest of the market.
Far from it, notes TickMill Group market analyst James Harte.
“Interestingly, against the backdrop of better performance from US companies, even State Street (NYSE:STT) stock was able to bounce back yesterday following an initial crash as the bank undershot Q1 forecasts,” Harte wrote. “This clearly shows there is a bullish skew to markets currently and paints plenty of upside risk into the near-term outlook for GS.”
The investment bank is somewhat unique in its Q1 struggles, as rivals Citigroup (NYSE:C) and JPMorgan Chase (NYSE:JPM) reported higher-than-expected fixed-income trading numbers. Shares of Goldman Sachs (NYSE:GS) fell 1.4% Tuesday afternoon to $335.03, meanwhile Bank of America (NYSE:BAC) stock improved 0.6% to $30.53 after it also reported results before the opening bell.
Chris Beauchamp, chief market analyst at the online trading platform IG, expressed a related sentiment about the relative health of the market at large.
“It seems the cost-cutting at Goldman Sachs (NYSE:GS) wasn’t enough to boost performance this time around, but despite the vampire squid’s poor showing earnings season seems to be providing the support stocks have been looking for,” Beauchamp wrote.
“While the Dow has struggled thanks to Goldman and J&J numbers, it is a positive afternoon for stocks, with markets taking their cue from China’s GDP figures overnight, which have provided much-needed reassurance about the health of the global economy.”