Goldman, Morgan Stanley Suspense Builds as Rival Traders Diverge
(Bloomberg) -- Goldman Sachs Group Inc. and Morgan Stanley are typically the finale when giant U.S. banks report quarterly earnings, and by then, everyone on Wall Street can guess how their traders and bankers fared. Unusually divergent results from major rivals in recent days make it harder for investors to anticipate what the figures from Goldman Sachs and Morgan Stanley will look like early Tuesday morning. Might they follow JPMorgan Chase & Co. in missing analysts’ estimates -- or Citigroup Inc., which saw its shares jump on higher-than-expected revenue from fixed-income products? Some analysts studying the numbers say they see bright spots -- such as commodities trading and equities issuance -- that could bode well for Goldman Sachs and Morgan Stanley. On a conference call with analysts, JPMorgan Chief Financial Officer Marianne Lake pointed to weakness in revenue from trading credit and securitized products. But there were gains in the firm’s commodities business, which saw activity return to more-normal levels compared with the same period a year ago.