Trader Talk
- Risk Trade Is Back On
- This Week's Biggest Story: The Dollar
- Corporate Issuance Continues at Torrid Pace
- The Bernanke Dollar Bounce & Gross Says Forget About Rate Hike
- Colgate Really Sparkles After Hours
- Light Volume Has Traders Complaining
- Gold Shatters Another Record
- Have Retailers Reached Their Limits?
- The Retail Mind Game
- The Gold Rush Is On
TRADER TALK RSS FEED
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Why Amazon Rules Retail
- Gold Will Collapse Like Oil Did in 2008: Charts
- China Eastern to Complete Shanghai Air Buy by End '09
- Wave of Debt Payments Facing US Government
- JAL Slides to Record Low on Bankruptcy Jitters
- Prepare For Large Decline In Stocks, Next Year?
- Paul: Audit the Fed
- Nielsen Ratings Coming to Video Games
- The Social Media Gaming Threat
- Can Murdoch Help Bing Challenge Google and Shift the Content Equation?
- HP's Mark Hurd
- HP Comes in As Expected; Is It Time to Buy?
- 9 Stocks That Play Rising Water Costs: Strategists
- Weis' Deal Likely Won't Change Big Money Contracts
- Gold Prices Can Double in 3 Years: Portfolio Manager
- Nov. 23: Unusual Volume Leaders
- Help Wanted—Please Run $4 Billion University
- Apple Comes to AT&T's Rescue
- Strong Banks, Weak Credit: Treasury Rethinks TARP
- How Many US Consumers Will Shop this Weekend?
- Tuesday's Heavy Dose of Data to Dictate 'Risk' Behavior
- World's Largest Share Issue Priced at Deep Discount
- GE Capital Losses May See Dramatic Fall: JP Morgan
- Obama says Boosting US Jobs is Top Priority
- Why the Dollar Will Likely Stay Weak for Some Time
- Playboy to Outsource Most Magazine Operations: Report
- General Motors to Cut up to 9,500 Jobs in Europe
Text Size 
CNBC Reporter
Buy the rumor...sell the...Goldman Sachs [GS
Loading...
()
] down 3 percent pre-open, S&P 500 futures dropped 10 points right after Goldman reported earnings far better than expectations ($5.25 vs. $4.24). Even topline was better than consensus: $12.37 billion vs. $11.02 billion.
How did Goldman beat by such a wide margin? There appears to be two factors:
1) big gains corporate and real estate principal investments ($911 million); and
2) they paid less salary relative to their revenues: the ratio of compensation to revenues dipped to 43%, compared to 48% in the last quarter.
Trading remained strong: even though Fixed Income, Currency and Commodities (FICC) made less than the second quarter, it still generated $6 billion in revenues, about half the total.
The investment banking backlog "increased significantly."
 |
Elsewhere:
1) futures came off their lows at 8:30 AM; several economic indicators were released, but the Empire Manufacturing number came in at twice the expectation: 34.57 vs. 17.25 consensus.
2) Citigroup [C
Loading...
()
] down 2 percent reported a loss of $0.27 (includes items related to its exchange offer and preferred stock dividends) vs. consensus of a loss of $0.38, revenues slightly above consensus: $20.4 billion topline vs. $20.04 b consensus).
3) While everyone was obsessing on Goldman and Citi, cell phone giant Nokia [NOK
Loading...
()
] is down 9 percent pre-open reported earnings and sales well below expectations. They said there were some positive signs but the global consumer spending outlook for next year is uncertain.
4) On Monday Pier One [PIR
Loading...
()
] gave some hope that the retail environment may be turning around amid improved traffic and margins at its stores.
 |
], which is soaring 10 percent pre-open. The shoe retailer now sees a 6 percent to 8 percent rise in Q3 same store-sales on improved customer traffic. In addition to the sales pickup, the retailer sees higher margins, enabling it to significantly raise its full-year earnings guidance to $0.70-$0.80 from $0.37-$0.45. It does, however, remain "cautious in its expectations for the fourth quarter as it expects the economic environment to remain challenging."
5) Harley-Davidson [HOG
Loading...
()
] down 6 percent after missing estimates ($0.11 vs. $0.21 est.) on lower margins. While motorcycle sales continued to post a steep year-over-year drop of 21 percent in the third quarter, that was better than the 30 percent drop in Q2 sales.
The motorcycle manufacturer expects to ship 222,000-227,000 motorcycles in 2009, at the high end of its lowered guidance issued at the end of the second quarter.
_____________________________
_____________________________
Questions? Comments?
POPULAR TRADER TALK POSTS
- Risk Trade Is Back On
- This Week's Biggest Story: The Dollar
- Corporate Issuance Continues at Torrid Pace
- The Bernanke Dollar Bounce & Gross Says Forget About Rate Hike
- Colgate Really Sparkles After Hours
- Light Volume Has Traders Complaining
- Gold Shatters Another Record
- Have Retailers Reached Their Limits?
- The Retail Mind Game
- The Gold Rush Is On
Data is a real-time snapshot *Data is delayed at least 15 minutes