US stock futures were trading flat on Tuesday as investors parsed through the earnings report from JPMorgan Chase and awaited results from Wall Street banks such as Goldman Sachs and Wells Fargo.
The bank's net earnings applicable to common shareholders fell to $2.20 billion (£1.77 billion) in the quarter ended June 30 from $2.35 billion a year ago. Earnings per share also fell 2.8% from a year ago.
Both banks surpassed expectations for their second-quarter results on Tuesday even though profits fell at Goldman. The investment management company reported $5.71 EPS for the quarter, topping the Thomson Reuters' consensus estimate of $4.74 by $0.97. It was not immediately clear if the reported numbers were comparable with estimates. Goldman Sachs is considered the least rate-sensitive of the three major banks that gave quarterly reports on Tuesday. Articles appear on euronews.com for a limited time.
Citigroup Inc kicked off the earnings season on Monday, with a mixed quarterly report. This represents a $3.40 dividend on an annualized basis and a dividend yield of 1.64%. The company has a quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 2.84.
A number of research analysts have commented on the stock. Alera Investment Advisors LLC boosted its holdings in shares of Goldman Sachs Group by 71.8% in the first quarter. The firm's 50-day moving average is $197.33. Finally, HSBC restated a "hold" rating on shares of Societe Generale in a research note on Thursday, April 4th. Zacks Investment Research upgraded shares of FirstService from a "strong sell" rating to a "hold" rating and set a $110.00 price objective for the company in a research note on Tuesday, June 25th. BMO Capital Markets reduced their price target on Goldman Sachs Group from $262.00 to $260.00 and set a "market perform" rating for the company in a research report on Tuesday, April 16th.
Now, Goldman Sachs is offering business clients financial counseling in a bid to build new consumer banking relationships and expanding its digital offerings to compete against the likes of Chase and Wells Fargo. The stock now has an average rating of "Hold" and an average price target of $240.73. Goldman Sachs Group's dividend payout ratio (DPR) is presently 13.45%.
Goldman is hoovering up consumer deposits, launching a joint credit card with Apple Inc., building out wealth-management capabilities and opening up the firm's private-investing funds to outside money.
Institutional client revenue, which includes trading, slipped 3 per cent, while investment banking revenue was down 9 per cent.