By
Svetlana Soroka
April 18th, 2024
The stock futures tied to all three major indexes advanced after Goldman Sachs’ latest earnings report came in better than expected.
Goldman Sachs (NYSE: GS) finally released its anticipated earnings report on Monday, crushing analysts’ expectations on strong bond trading results. Following the better-than-expected quarterly report, the banking giant also saw its shares initially rise 4% amid a market that generally underperformed throughout last week. Furthermore, Goldman Sachs’ latest showing also induced a rise in US stock index futures, with the Dow climbing over 200 points.
Dow Jones Industrial Average (DJIA) futures contracts shot up 286 points, or 0.92%, while S&P 500 futures gained 0.84%. In addition, Nasdaq 100 futures rose 0.99% in the same period. All major indexes seem to be on the mend after a losing week that saw the Dow shed 0.16%. The S&P 500 and tech-heavy Nasdaq Composite had also declined 0.93% and 1.57%, respectively.
Besides Goldman Sachs, stock futures also got a boost from Boeing shares (NYSE: BA) which gained more than 3%. This was predominantly because of reports that Delta Airlines was buying 100 737 Max 10 planes.
Goldman Sachs Earnings by the Numbers
Goldman Sachs’ shares jumped 3% in premarket trading due to its strong quarterly report. Furthermore, the New York-based banking giant’s fixed income accrued around $700 million more than expected. However, Q2 profit dropped 48% to $2.79 billion, or $7.73 a share, year-over-year, which still beat analysts’ expectations of $6.58 per share.
Goldman Sachs’ revenue dropped 23% to $11.86 billion, which still comfortably beat out the consensus estimate of $10.86 billion. The overall decline in Goldman Sachs’ YoY revenue is the broader drop in investment banking revenue across the board. However, the multinational bank still benefited immensely during the quarter from a 55% surge in fixed income revenue. For instance, Goldman Sachs’ fixed income operations generated $3.61 billion in revenue for the quarter. This was enough to see the bank comfortably eclipse StreetAccount’s $2.89 billion estimate on several fronts.
Equities revenue reported by Goldman Sachs for the quarter also climbed 11% to $2.86 billion, exceeding analysts’ $2.68 billion estimate. Commenting on the banking giant’s good outing for the recently concluded quarter, Goldman Sachs’ CEO David Solomon explained:
“We delivered solid results in the second quarter as clients turned to us for our expertise and execution in these challenging markets.”
He further continued:
“Despite increased volatility and uncertainty, I remain confident in our ability to navigate the environment, dynamically manage our resources and drive long-term, accretive returns for shareholders.”
Beyond Goldman Sachs; Stock Markets & Futures to Be Further Impacted by More Earnings Reports
Goldman Sachs’ earnings represent part of several notable quarterly releases to take place throughout this week. Investors will be paying close attention to the financial optics of these big names in order to take cues on where the markets are headed next. Some other companies to release their bottom lines this week include Bank of America, Netflix, Tesla, AT&T, and American Express.
According to UBS Global Wealth Management chief investment office, Mark Haefele, there might be more market volatility in the coming months. Haefele believes that market sentiment may not improve until headline and core inflation both decline.