Stock Market Today: Why Goldman Sachs and JPMorgan Chase Are on the Move

What you need to know about today's stock market.

Jul 15, 2014 at 9:25AM
Longview

The Dow Jones Industrial Average (DJINDICES:^DJI) has gained 31 points in premarket trading, suggesting a positive start to the stock market today. Global indexes were mixed overnight: Asian shares gained, while European stocks were down about 0.4% as of 8:30 a.m EDT.

Investors will hear from Federal Reserve Chairwoman Janet Yellen, who this morning will speak to Congress about the economy and likely provide some clues on the central bank's thinking about future interest rate hikes. In the meantime, the Dow could be driven by earnings season, as components JPMorgan Chase (NYSE:JPM) and Goldman Sachs (NYSE:GS) both delivered strong second-quarter results this morning.

Gs Ceo

Goldman CEO Lloyd Blankfein.

Goldman Sachs raked in $2 billion in quarterly profit, translating to EPS of $4.10. That result was an 11% improvement over last year's haul and a full $1.05 above what analysts were expecting. Revenue also rose to $9.1 billion, which was significantly ahead of expectations for a 7% drop. Goldman saw weakness in its institutional client services business, which fell 11% on weak demand for currency and commodity products. However, a spike in revenue from the investing and lending division more than picked up that slack.

CEO Lloyd Blankfein said in a press release that this quarter's results demonstrate the "diversity, strength, and breadth of our global franchise." Investors seem to agree and had bid up Goldman Sachs' stock by 1.5% in premarket trading.

Meanwhile, JPMorgan Chase easily beat expectations for its fiscal second quarter this morning. Profit was $1.46 per share, and revenue came in at $25.3 billion. Both of those figures were down from the year-ago period, but Wall Street analysts were expecting even worse results of $1.29 in profit and $23.7 billion in revenue.

Consistent with other major bank executives this week, CEO Jamie Dimon sounded upbeat about recent trends in the economy. In a press release accompanying the results, Dimon said that "consumers, middle market companies, and corporations are in increasingly good financial shape and the labor market is showing steady improvement." That improvement helped the bank post gains in its consumer banking business, as deposits climbed 9%. Still, weakness in JPMorgan's mortgage and financial-markets products kept overall results lower year over year. The stock was up 2.7% in premarket trading.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs. The Motley Fool owns shares of JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers