Stocks Fall as Financial Heavyweights Post First-Quarter Earnings – TheStreet.com

Stocks Fall as Financial Heavyweights Post First-Quarter Earnings – TheStreet.com


Here Are 3 Hot Things to Know About Stocks Right Now

  • The Dow Jones Industrial Average declined Monday after earnings reports from Citigroup (CGet Report) and Goldman Sachs Group (GSGet Report) .
  • Citigroup posted better-than-expected results in the first quarter. The stock rose slightly.
  • Goldman Sachs Group (GSGet Report)  fell after first-quarter profit fell 21% though less than expected.

Wall Street Overview

Stocks were lower Monday as financial powerhouses Citigroup ( CGet Report) and Goldman Sachs ( GSGet Report) reported first-quarter earnings and as Wall Street monitored developments in U.S.-China trade negotiations.

 

The Dow Jones Industrial Average fell 63 points, or 0.24%, to 26,348, the S&P 500 slipped 0.15%, and the Nasdaq fell 0.08%.

 

Citigroup rose slightly to $67.54 after posting better-than-expected results for the first quarter as a steep cut in the U.S. bank’s effective corporate tax rate helped to offset a fall in stock-trading revenue. Net income climbed by 2% from a year earlier to $4.71 billion. Earnings per share were $1.87, beating Wall Street analysts’ average estimate of $1.80.

 

Shares of Goldman Sachs  ( GSGet Report) fell 2.1% to $203.51 after the investment heavyweight said first-quarter profit fell less than expected. Net income fell by 21% from a year earlier to $2.25 billion, the New York-based bank said. Earnings per share were $5.71, beating Wall Street analysts’ average estimate of $4.89.

 

Treasury Secretary Steven Mnuchin said over the weekend that that the U.S. and China – the world’s two largest economies – were moving closer to a trade agreement. 

 

Mnuchin, speaking Saturday on the sidelines of the International Monetary Fund and World Bank spring meetings, said the U.S. and China held phone discussions last week and he wasn’t sure if more face-to-face meetings would be needed. Mnuchin didn’t give a timetable for when negotiations might be completed, the Associated Press reported.

 

Reuters reported that U.S. negotiators have tempered demands that China curb industrial subsidies as a condition for a trade deal after strong resistance from Beijing. Negotiators have become resigned to securing less than they would like on curbing those subsidies and are focused instead on other areas where they consider demands are more achievable, Reuters added, citing sources.

 

 

Shares of M&T Bank ( MTBGet Report) were down slightly to $166.92 after the Buffalo, New York-based bank reported mixed first-quarter results. The bank reported first-quarter earnings of $3.35 per share, topping analysts’ estimates by a nickel. 

 

Waste Management ( WMGet Report) climbed 2.8% to $104.64 after announcing it had agreed to acquire its smaller rival Advanced Disposal Services ( ADSWGet Report) . Waste Management will pay $33.15 a share in cash for Advanced Disposal, which represents a 22.1% premium to Advanced Disposal’s closing price Friday of $27.14. Including debt, the deal is worth $4.9 billion.

 



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