Goldman To Follow JPM & Citi?
Shares in US banking giant Goldman Sachs are trading higher ahead of the open today as traders brace for the group’s Q4 earnings. A slew of strong earnings from leading financials on Friday has helped stoke sentiment ahead of the release. In terms of the numbers, Wall Street is looking for EPS of $5.56 on revenues of $10.75 billion. Goldman has been on a strong run recently with three consecutive quarters of topping analyst expectations. Given the current backdrop, a strong result today should propel GS shares back up towards the November 2022 highs around $388.
However, as we saw with JPM and Citi last week, alongside the headline figures, traders will also be looking at the breakdown of the group’s business sectors. With both banks recording a heavy drop in investment banking revenues, investors are bracing for a similar story from Goldman today. The market will also be keen to head CEO Solomon’s outlook and how he views downside risks not just to the bank but the US economy as a whole, particularly in light of Goldman laying off more than 3000 employees just last week.
The rally in GS shares has seen the stock climbing back above the 357.35 level. Price is now testing the area of resistance around the bull channel top and the 377.76 structural level. This is a key resistance zone for GS and a break above here will open the way for a further run towards 402.39 next, in line with bullish momentum studies readings.