Last night we put out an alert where traders were clearly making a bet that Goldman Sachs (NYSE:GS) was going to be an earnings winner compared to its smaller and more troubled Bear Stearns (NYSE:BSC). This morning that looks to be the case and then some.
Goldman Sachs reported earnings at $6.13, but that looks to have items, and it had gains from being short mortgages and posted major loan losses like other brokerages. Shares are up another 2% pre-market back over $210.00 after rising each day.
Bear Stearns isn’t feeling the same brotherly love this morning. Its shares are down 1.6% pre-market at $113.75 after reporting $1.16 EPS. This was perhaps the most leveraged to mortgages and CDO’s.
Here was what we noted yesterday that showed the performance of all major brokerages into today’s earnings and after the FOMC 50/50 rate cut.
Jon C. Ogg
September 20, 2007