Goldman & BlackRock – Starting off Corporate Earnings Season Strong? | Before & After | Refinitiv | Summary and Q&A

TL;DR

This analysis provides insights on Goldman Sachs and Blackrock earnings, highlighting their ties to the market and the impact of US payrolls.

Key Insights

• 🧑‍⚕️ Goldman Sachs' earnings will offer insights into the overall health of the financial sector, with a focus on Investment Banking and capital markets.
• 👶 Goldman's stock growth will depend on factors such as the bank's new growth initiatives and its valuation relative to peers.
• 💇 Blackrock's earnings will demonstrate the impact of commission cuts and passive flows on the asset management industry.
• 🙂 The latest US payrolls data confirms a slightly slowing economy and supports the view that the Fed will not change rates in the near term.
• 😘 Weak wage growth suggests lower inflationary pressure and more market stability.
• ❓ The performance of Goldman Sachs and Blackrock will have implications for the broader stock market and growth stocks in the US.
• 😅 Market stability is supported by the outlook of neither hot nor cold, which has been prevalent over the last decade.

Transcript

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Questions & Answers

Q: What factors will drive the next move for Goldman Sachs' stock?

One key factor will be whether Goldman's earnings report justifies breaking the 250 resistance, particularly if growth comes from Investment Banking or new initiatives. Investors will also consider the bank's exposure to capital markets and its relatively lower valuation.

Q: How important are Investment Banking revenues for Goldman Sachs compared to its peers?

Investment Banking accounts for more than 80% of Goldman's revenue, compared to 32% for JP Morgan and 22% for Citi. This higher reliance on Investment Banking could be beneficial if the market remains strong and Goldman reflects that in its numbers.

Q: How does Blackrock's earnings depend on the market?

Blackrock's earnings are closely tied to the market, as its fees are based on assets under management (AUM). The company's performance will show the impact of commission cuts and the influence of passive flows on returns.

Q: What impact did the latest US payrolls data have on the market?

The data confirmed the consensus opinion of a slightly slowing economy. The market reaction was not significant, as it supported the view that the Fed will not change rates in the near term. Wage growth was weaker than expected, suggesting lower inflationary pressure.

Summary & Key Takeaways

• This show focuses on major economic and corporate data releases, particularly market-moving corporate earnings reports.

• The earnings report for Investment Banking Titan Goldman Sachs will give a view of the broader earnings environment for financial companies.

• Blackrock's earnings are closely tied to the market, and its performance will shed light on the impact of commission cuts and passive flows.