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Shares fall after bank income, Goldman's Tumble Pushes Dow Lower



Here are 3 hot things to know about shares right now

  • The Dow Jones Industrial Average declined on Monday following performance reports from Citigroup (C – Get Report) and Goldman Sachs Group (GS – Get Report).
  • Citigroup reported better than expected earnings in the first quarter. The stockpile fell slightly.
  • The Goldman Sachs Group (GS – Get Report) fell 3.1% after the first quarter earnings fell 21%, but less than expected.

Wall Street Overview

The stocks were lower Monday as Citigroup's financial power plant (C ̵
1; Get Report) and Goldman Sachs (GS – Get Report) reported the results for the first quarter and Wall Street monitored developments in the US and China trade negotiations.

The Dow Jones Industrial Average fell 70 points, or 0.27%, to 26,341, S & P 500 slid 0.31% and Nasdaq fell 0.46%.

Citigroup slowed slightly to $ 67.10 after putting up better than expected Q1 results as a steep decline in US bank's effective corporate tax rate helped offset a fall in stock market earnings. Net profit increased by 2% from the previous year to $ 4.71 billion. Earnings per share amounted to $ 1.87, which means that the Wall Street analyst's average estimate is $ 1.80.

Stocks of Goldman Sachs (GS – Get Report) fell 3.1% to $ 201.43 after the heavyweight investment said the first quarter earnings fell less than expected. Net income decreased by 21% from the previous year to $ 2.25 billion, said the New York-based bank. Earnings per share amounted to $ 5.71, so the Wall Street analyst's average estimate was $ 4.89.

"Despite the inverted interest rate curve worrying, revenue coming out of large financial players will be tearing," says Chris Larkin, Senior Vice President at E * Trade. "SPX is less than 1% from its all-time highs and it's someone's guess if it won't break through. Trade and results are the main factors in the equation that can push it up or right back. However, since the hope of a trade deal grows stronger, healthcare has suffered severely as investors once again shift away from defensive games. "

Treasury Secretary Steven Mnuchin said over the weekend that the US and China – the world's two largest economies – went closer to a trade agreement.

Mnuchin spoke Saturday on the side of the International Monetary Fund and the World Bank's spring meetings, saying that the US and China held telephone discussions last week and he was not sure if more meetings would be needed face to face. Mnuchin did not provide a timetable for the completion of the negotiations, the Associated Press reported.

Reuters reported that US negotiators have demanded that China restrict industrial subsidies as a condition for a trade agreement following strong opposition from Beijing. Negotiators have been dismissed to secure less than they would like to limit these subsidies and are instead focused on other areas where they consider the requirements are more achievable, Reuters added, with reference to sources.

WM (Get Report) climbed 2.8% to $ 104.60 after announcing that it had agreed to acquire its less competing Advanced Disposal Services (ADSW – Get Report). Waste management pays $ 33.15 in cash for Advanced Disposal, which corresponds to a 22.1% surcharge to Advanced Disposal's closing price on Friday of $ 27.14. Including debt, the deal is worth $ 4.9 billion.

The shares in M ​​& T Bank (MTB) decreased by 3% to $ 162.76 after Buffalo, New York-based bank reported mixed results for the first quarter. The bank reported earnings for the first quarter of $ 3.35 per share, estimated analysts' estimates of nickel.


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