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Behind Goldman's Early Report

Goldman reported early, coming in with earnings of $3.39 a share, well above the $1.64 expected.

Positives are strong fixed income due to wider spreads.

Goldman is signalling it will raise $5 billion after the stress test, if permitted by its supervisors and if it passes the stress test.

They said they would like to use the capital raise "plus additional resources" to pay back all of the $10 billion in TARP funds.

The capital raise is generally being viewed as a positive, however hedge funds are already long the stock so no surprise there is some selling on the news. Don't act shocked: the stock was below $80 a month ago--it closed at $130, outperforming even the other financials in the past month!

Rather than the quarterly conference call at 9 AM tomorrow, Goldman will hold a Media Call at 7 AM.

My how times are changing.

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