A Very Subdued Reaction in Goldman
News of the Goldman Sachs (GS) earnings report was usurped by the Citigroup (C) announcement that Vikram Pandit would no longer be around to celebrate the holidays with the company as its CEO. In or out, I'm trying not to focus on it too much Tuesday, as there are plenty of others already doing so. I am much more interested in the reaction of stocks to their earnings. Of course, if there is some sort of smoking gun at Citigroup, then it will warrant attention, but nearly all the theories here have been conjecture. As the premarket trading in Citigroup showed, chasing conjecture on a story like this could be very, very painful.
Goldman hasn't reacted much to earnings thus far, although we did see part of the run that I had anticipated would occur today. Still, this is a very subdued reaction to a good beat. The conference call wasn't overly enthusiastic, and when you pair that with the early hesitation in Citigroup shares, I think we have ourselves a situation in which the market has yet to respond to Goldman earnings, since it is almost as if it did not even report this morning....225 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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