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Coffee With Greta: More Bank Earnings

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DJIA Futures: -147 (-0.4%)

SPX Futures: -21 (-0.4%)

NASDAQ Futures: -77 (-0.5%)

Good morning friends!

Futures are lower to start the new week of trade.

Let’s get right to it!

Goldman Sachs Top Earnings Estimates

Goldman Sachs (GS) shares are down 0.5% ahead of the open despite beating Q4 expectations. 

Here’s how the investment bank’s results compared to analysts’ estimates: 

  • EPS: $5.48 vs $3.51 expected
  • Revenue: $11.32 billion vs $10.80 billion expected

Earnings jumped 51% year over year while companywide revenue rose 7%. 

Asset and wealth management revenue jumped 23% from a year earlier to $4.39 billion, topping estimates by nearly $550 million.

Equities trading revenue rose 26% to $2.61 billion vs $2.22 billion expected. 

Fixed income trading revenue dropped 24% $2.03 billion vs $2.53 billion expected.

Investment banking fees fell 12% to $1.65 billion, matching estimates.

CEO David Solomon said, “With everything we achieved in 2023 coupled with our clear and simplified strategy, we have a much stronger platform for 2024.”

Morgan Stanley Drops Despite Revenue Beat

Morgan Stanley (MS) shares are dropping 3.2% in premarket trade despite beating Q4 revenue expectations as earnings fell short. 

Here’s how the investment bank’s results compared to analysts’ estimates: 

  • EPS: $0.85 vs $1.07 expected
  • Revenue: $12.9 billion vs $12.75 billion expected

Net income was down more than 30% year over year as the bank got hit with one-time regulatory charges. 

Wealth management revenue totaled $6.65 billion up slightly from $6.63 billion a year ago. 

Investment management totaled $1.46 billion, little changed from last year.

Key Manufacturing Gauge Tumbles

A key manufacturing gauge tumbled further into negative territory to start the new year. 

The Empire State manufacturing index dropped 29.2 points this month to -43.7.

That’s the lowest reading since May 2020 and lower than economists’ expectations for the index to rise to -4. 

The new orders index dropped 38.1 points to -49.4 in January and the shipments index fell 24.9 points to -31.3.

But optimism for the future continued to pick up. 

The future business conditions index rose 7 points to 18.8 while capital spending increased 10 points to 13.7.

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