Banks Drag Stocks Down on Slow Earnings Start

The holiday shortened trading week got off to a slow start after earnings duds from Citigroup and Goldman Sachs dragged down stocks.  Traders focused on Goldman’s declining backlog and miss on revenue, while for Citigroup the big slide in stock trading revenue.  Revenues declined for both banks, Citi had a slight beat with the earnings, while Goldman delivered a strong beat along with a dividend increase.

The S&P 500 index is down 0.2% in early trade, tentatively finding support from 2,900, which was key resistance last week.  A sluggish start to earnings season does not support a run towards the record highs made last year.  The banks will have difficulty surviving a low interest rate environment, so we may see other financial earnings results struggle to drive the sector higher.

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Ed Moya

Ed Moya

Senior Market Analyst at OANDA
With more than 20 years’ trading experience, Ed Moya is a market analyst with OANDA, producing up-to-the-minute fundamental analysis of geo-political events and monetary policies in the US, Europe, the Middle East and North Africa. Over the course of his career, he has worked with some of the world’s leading forex brokerages and research departments including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including BNN, CNBC, Fox Business, and Bloomberg. He is often quoted in leading print and online publications such as the Wall Street Journal and the Washington Post. He holds a BA in Economics from Rutgers University. Follow Ed on Twitter @edjmoya ‏
Ed Moya