Goldman Earnings Up Next

Following on from JP Morgan and Citi’s bumper Q1 earnings calls last week, traders now turn their attention to Goldman Sachs which is due to report today. On the numbers front, the market is looking for EPS of $8.14 on revenues of $12.762 billion. These forecasts mark a solid uptick on the prior quarter’s negative performance with EPS forecasts over double the $3.32 EPS reported last time around.

Given the optimism over GS earnings, the company’s stock price is trading a little higher ahead of the open today. Should forecasts be satisfied or beaten we can expect GS stock to rally firmly, as we saw from JPM and Citi last week. Interestingly, against the backdrop of better performance from US companies, even State Street stock was able to bounce back yesterday following an initial crash as the bank undershot Q1 forecasts. This clearly shows there is a bullish skew to markets currently and paints plenty of upside risk into the near-term outlook for GS. A beat on today’s earnings release should see GS shares heading back up to YTD highs near-term.  

Technical Views

GS

The rally off the 305.71 lows in GS has seen the market breaking above the 324.48 level, making it as high as a test of the 339.67 level. This is a key pivot point for the stock and with pre-market pricing above this level currently, the focus is on a continuation higher here with 357.35 the net upside target to note.