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Banks Drag Stocks Down on Slow Earnings Start

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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.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Ed Moya

Ed Moya

Senior Market Analyst - The Americas 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 geopolitical events and monetary policies around the world. 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 and Bloomberg, and is often quoted in leading publications including the Wall Street Journal and the Washington Post. He holds a BA in Economics from Rutgers University.
Ed Moya

@https://twitter.com/edjmoya

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