On the SPOT blog (10/18/2022) [G..]
The news this morning was good in that US industrial production rebounded in September (rose 0.4% beating estimates). In addition to that, Goldman Sachs (ticker: GS) reported beating revenue and earnings estimates. Last time I owned this stock, it allowed me to get out in green so I'm inclined to having this stock in my closely watched list. We've discussed the premise of having GS in our watch list so let me skip that section. GS's beat was good but the picture seemed less rosy compared to BAC. I think GS's investment banking revenue fell significantly and their consumer business (Marcus) doesn't seem to be making money yet. GS might be pulling back on some of its plans for Marcus. Global markets segment seems to have increased revenue and is restructured to be with investment banking business. Org restructuring is ongoing at GS in order to meet their multi-year targets. (If I read it right, Marcus will be under Wealth Management, Global Markets and Investment Banking will be under one org and platforms will host fintech arm). Apparently, these will help GS have a holistic approach to its end markets. GS's view of the economy doesn't seem as good as BAC's. It also appears that GS is seeing signs of deterioration of consumer credit and does think that there is a good chance that US will have a recession albeit it is unclear how difficult. It also expects a "bumpy" ride for M&A and Capital markets for 2023. Having said that, GS's stock has held up remarkably well (relatively speaking) so let's get to gScores for trading insights.
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