background image background image background image

NY Open: A big beat for big banks

Equities 4 minutes to read
Michael O’Neill

FX Trader,

Summary:  Both Goldman Sachs and Morgan Stanley surprised financial markets with earnings per share beats, sending their shares higher as the broader US equities complex recovers.

Wall Street is dancing to the Gold Diggers of 1933 film song “we’re in the money.” Maybe not everyone, but certainly the bankers at Goldman Sachs and Morgan Stanley are boogying in the boardrooms.

Goldman Sachs Group (GS: NYSE) surprised analysts when earnings per share rose to $6.28 rather than the $5.38 forecast for Q3. The stock rose 1.38% as of 14:00 GMT. Morgan Stanley’s share price soared 3.27% (as of 14:00 GMT) when it announced earnings per share were $1.17, handily beating the $1.01 that was estimated.

The three major US equity indices are up over 1.0% led by the Nasdaq with a gain of 1.20%. The investment bank earnings and the easing of Saudi Arabia/US tensions supported the prices

Wall Street’s rally has improved the FX market risk tone as evidenced by the weaker Japanese yen and Swiss franc, while the rest of the G-10 majors record gains.

The US data underscored the health of the US economy. Capacity utilisation and Industrial Production for September came in as expected. Hurricane Florence may have reduced gains. JOLTS Job openings increased, and the NAHB Housing Market Index rose to 68 from 67 in September.

NZDUSD and GBPUSD rallied the most since the open. Kiwi is still benefiting from the stronger than expected CPI reading reported at the start of the Asia session. Sterling continues to bask in the glow of this morning’s employment report showing average earnings rising. Traders appear to be ignoring Brexit developments or more accurately, the lack of Brexit developments. The Irish border issue is the sticking point, and hopes of a final summit in November are fading.  GBPUSD is in an uptrend above 1.3130. This morning’s break above 1.3200-10 targets 1.3280.
GBPUSD four-hour
GBPUSD (four-hour, source: Saxo Bank)


The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (
- Full disclaimer (

Saxo Markets
40 Bank Street, 26th floor
E14 5DA
United Kingdom

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo Markets is a registered Trading Name of Saxo Capital Markets UK Ltd (‘SCML’). SCML is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871. Registered in England & Wales.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo Markets assumes no liability for any loss sustained from trading in accordance with a recommendation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.

©   since 1992