Goldman Sachs Posts Second-Best Revenue Quarter Ever as Mixed Bank Earnings Open Earnings Season
Goldman Sachs posted its second-best revenue quarter ever and Citigroup's profit jumped 40%, but JPMorgan and Wells Fargo disappointed, as the big-bank reports that opened Wall Street's third-quarter earnings season drew volatile trading.
Wall Street’s big banks opened earnings season Tuesday with sharply mixed results: Goldman Sachs reported its second-best revenue quarter ever and Citigroup’s profit jumped 40%, while JPMorgan Chase fell short of expectations and Wells Fargo disappointed on revenue, according to the Wall Street Journal’s live coverage of the day’s reports.
JPMorgan’s earnings rose but missed analyst estimates after a slowdown in investment banking from the prior quarter. Wells Fargo’s top line came in below what analysts expected. Bank shares swung in volatile premarket trading as investors weighed the numbers.
The reports came with cautious words about the broader economy. JPMorgan and Wells Fargo both said businesses and consumers were still spending and appeared resilient, a stance the Journal described as cautious optimism despite investor worries that interest rates, inflation and AI investment could dent bank profits.
Chip stocks slide on China competition fears
Outside the banks, chip stocks stayed under pressure for a second day after comments from CXMT, one of China’s biggest memory-chip makers, revived fears of Chinese competition in semiconductors. Micron shares were down about 3% in premarket trading, and the Journal reported that investors have grown uneasy about whether AI-related demand can sustain current chip valuations.
Stock futures pointed to a mixed open Tuesday: Dow Jones futures were up 0.9%, while S&P 500 futures slipped 0.1% and Nasdaq futures fell 0.7%. UnitedHealth shares rose after the health insurer’s earnings beat estimates; Johnson & Johnson slipped after its results narrowly missed.
Oil, yields and gold
Oil prices retreated Tuesday, with West Texas Intermediate crude down 1.6% to $92.20 a barrel, though Brent crude remained close to $105 as Middle East tensions persisted. The 10-year Treasury yield stood at 5.19% after the bond market’s Monday holiday closure. Gold futures rose 0.5% to $4,210 an ounce, and bitcoin traded at $83,100, recovering from an overnight low just under $81,000.
Reporting based on coverage by the Wall Street Journal and Investopedia.
