Goldman Sachs and Morgan Stanley Stung by Meredith Whitney (GS, MS)

NASDAQTrader shows the Q2 earnings estimates for Goldman Sachs cut down to $1.70 EPS, well under the $2.34 expected from Thomson Reuters; for the year that is now $15.70, down from $20 offered previously and under the Thomson Reuters consensus of $16.76.  Morgan Stanley estimates were cut down to $0.40 EPS for the quarter and $0.50 is the current Thomson Reuters consensus.

After looking at the lowest estimates that Thomson Reuters has for this quarter soon to be reported, Whitney now has the lowest estimate or is tied for the lowest estimate on Goldman Sachs and her new estimates is only a penny above the lowest target on Morgan Stanley for the coming quarterly report.

Morgan Stanley shares are still up 0.5% at $24.06, at the lower-end of the 52-week range of $22.40 to $35.78.

Goldman Sachs shares are down 1.1% at $134.30, at the very low-end of the 52-week range of $129.50 to $193.60.

This looks like the further lowering of a low-set bar rather than a tell from the industry.  These firms might not be in the greatest public spotlight, but the difference between this quarter report coming up and past quarters is that these brokerage firms might not have to have as unbelievable blow-out quarters as they would have before.

JON C. OGG