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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 [5]

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street 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 CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya