Wall Street's big banks rake it in
Goldman Sachs and Citigroup both posted better-than-expected profits. That may not do much for folks on Main Street, though.
Net income at New York-based Goldman in the last quarter rose 7% to $2.26 billion, or $4.29 per share. Revenue rose 1% to $10.1 billion. Those results exceeded analysts' expectations for a profit of $3.88 per share on sales of $9.64 billion.
Citigroup, also based in New York, reported net income of $3.81 billion, or $1.23 per share, on revenue of $20.4 billion, an increase of 3%. Analysts' had forecast earnings of $1.17 per share on sales of $20.11 billion. JPMorgan Chase (JPM) also posted better-than-expected results from the latest quarter.
Both Goldman and Citi had several highlights. Goldman reported investment banking revenue of $1.57 billion in the current quarter, a gain of 36% as demand for its underwriting business jumped. Revenue in Citigroup's capital markets business rose 31% to $6.98 billion, helped by its strength in international markets. Goldman and Citigroup also benefited from cost cutting.
Whether Wall Street's rising tide will lift the boats on Main Street remains to be seen. Economic signals, for now, are painting a pessimistic picture. As the The New York Times noted, the International Monetary Fund today cut its estimates for global economic growth. Target (TGT), the second-largest retailer behind Wal-Mart (WMT), today warned that that first-quarter results would be worse than expected because of colder-than-normal weather.
Data from the National Federation of Independent Business show that owners of small businesses are less confident about the economy than they have been in recent months. And U.S. consumer confidence tumbled in March after the automatic government spending cuts known as the sequester were triggered.
Although the benefits of the Wall Street resurgence could trickle down to ordinary folks, it may take a while for that to happen.
Jonathan Berr owns a small stake in Target. Follow him on Twitter @jdberr.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market ended the holiday-shortened week on a mixed note as the Dow Jones Industrial Average shed 0.1%, while the S&P 500 added 0.1% with seven sectors posting gains.
Equity indices faced an uphill climb from the opening bell after disappointing quarterly results from Google (GOOG 536.10, -20.44) and IBM (IBM 190.04, -6.36) weighed on the early sentiment. Google reported earnings $0.15 below the Capital IQ consensus estimate on revenue of $15.42 ... More
More Market News
Serious issues like drought and the deterioration of the developed world spell opportunity for this industry leader.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'