Goldman Sachs Falls on Wall Street After Disappointing Results

Goldman Sachs fell on Wall Street on Tuesday after disappointing results from the investment bank. It posted less profit last quarter than analysts and investors had expected. Goldman Sachs, in particular, suffered significantly lower results in investment banking.

The bank’s CEO David Solomon also had to admit that these are “not the results we are aiming for”. As a result, the stock was lowered by 2.5 percent shortly after opening.

Industry peer Morgan Stanley performed better than expected in the fourth quarter thanks to strong sales growth in the asset management business and higher interest income. As a result, that share rose 4.7 percent.

Stock markets in New York fell slightly. After the long weekend in the United States, attention remained mainly focused on the banking sector. On Friday, the major US financial banks JPMorgan Chase, Citigroup, Bank of America and Wells Fargo already released their past quarters results.

Investors also processed China’s economic growth figure. The world’s second-largest economy grew faster than expected last year but showed its slowest growth in decades. That was because the strict zero-covid policy was still in force in the country for most of the year. However, in December, China began lifting its strict corona measures after protests against that policy.

The Dow Jones index recorded a minus of 0.5 percent at 34,143 points shortly after the start of trading. The broad S&P 500 fell 0.1 percent to 3,996 points, and the tech gauge Nasdaq fell 0.2 percent to 11,053 points.

Tesla rose 4 percent. Analysts from investment bank Jefferies lowered the price target for the stock. However, the buying advice for the manufacturer of electric cars was maintained.

Pharmaceutical Pfizer struggled with a recommendation cut by Wells Fargo and lost 1.9 percent. Whirlpool fell 3.5 percent after disappointing fourth-quarter sales figures from the American white goods manufacturer.

Alibaba lost 1 percent. According to the business newspaper The Wall Street Journal, activist investor Ryan Cohen has built up an interest in the Chinese online retailer and is calling on the company to buy back more of its own shares.

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