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Goldman Sachs still rules Wall Street: Earnings blow away forecasts

Goldman Sachs still rules Wall Street: Earnings blow away forecasts



Hear what Goldman Sachs CEO said about guns in 2019ReplayMore Videos ... (16 Videos)Hear what Goldman Sachs CEO said about guns in 2019Amid inflation, economist warns avoiding recession won't be 'easy path'Citi chief economist: Recession risk is risingSchwab top strategist: Consumers 'much better prepared' for downturn compared to Great RecessionSuze Orman's tips for navigating inflation: Don't panic and continue to investHere's why bitcoin's drop has investors worriedStrategist: We're at peak pessimism (and why that's a good thing)Oil industry consultant: 'Can't drill our way out of' Russian oil ban'Shark Tank' investor warns market hasn't hit rock bottom yet Sales are up and prices too. Crocs CEO says brand was 'too cheap'What is a bear market?Here's what investors are worried about as retail stocks plungeStrategist explains why we've 'reached peak inflation'Expedia CEO: Travel demand will be 'gangbusters' this summer despite rising pricesRichard Quest: 'The market is in deep dysfunction'Redfin Chief Economist: Despite signs of the housing market cooling, prices will stay highNew York (CNN Business)Goldman Sachs is clearly still the top dog on Wall Street. The investment banking powerhouse reported earnings and revenue Monday morning for the second quarter that easily topped analysts' forecasts.

Goldman Sachs (GS) posted a profit of $2.9 billion, or $7.73 a share, during the three months ending in June. Analysts were expecting earnings of $6.61 a share. The bank also generated revenue of $11.9 billion. While that was down 23% from a year ago, it still surpassed consensus estimates of $10.7 billion.Shares of Goldman Sachs, one of the 30 stocks in the Dow, rose 4% in premarket trading Monday. The results helped lift the broader market as well. Dow futures were up more than 300 points.Goldman Sachs thrived despite the fact that stocks plummeted during the first half of 2022. The environment for banks was particularly challenging. Rivals JPMorgan Chase (JPM) and Morgan Stanley (MS) both reported earnings last week that missed forecasts. Bank of America (BAC) posted earnings and revenue that failed to meet expectations as well on Monday.Read MoreJamie Dimon battens down the hatches for a recessionBut Goldman Sachs was helped by a boost in its massive bond trading unit. Revenue for fixed income trading surged as yields rose thanks to interest rate hikes from the Federal Reserve. Goldman Sachs also said that its consumer and wealth management unit, which includes the digital bank Marcus, posted record revenue of nearly $2.2 billion in the quarter, up 25% from the same period last year."Despite increased volatility and uncertainty, I remain confident in our ability to navigate the environment," said Goldman Sachs CEO David Solomon in the bank's press release.Banks are also in much healthier financial shape now than they were during the 2008 Global Financial Crisis and Great Recession. Top US financial firms all passed the Fed's most recent stress tests, which measure how well banks will be able to weather any future economic and market adversity. Many big banks raised their dividends following the stress test results. Goldman Sachs boosted its quarterly payout by 25%. Despite that, shares of Goldman Sachs are still down more than 20% this year. And the broader market's struggles has been bad news for Goldman Sachs employees. The bank said Monday that its compensation and benefits expenses, the so-called bonus pool, was down more than 30% from a year ago.


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