Goldman Sachs Group


The Shockingly Tiny Earnings Number That Could Shift the Entire Market

JPMorgan Chase & Co. decisively moved the markets on Friday with its reported record Q1 revenue and earnings; CEO Jamie Dimon's positive economic outlook helped boost not only the stock, but the market in general.

And that's about as good as it got for the big banks… From there, it seemed like no amount of good news – and there was some good news – was enough to pull stocks out of the funk.

Wells Fargo also reported good earnings and a decent outlook, but its volume of loans and deposits were down more than analysts were expecting. WFC shares were up in the Friday pre-market – perhaps on JPMorgan's coattails… and promptly plummeted for the rest of the day.

In Monday pre-market moves, two more of the "Big Six" U.S. banks reported earnings, and it didn't go that well. Goldman Sachs tumbled 3%; earnings beat estimates… but revenue dropped 13% year over year. Citigroup also reported strong earnings and reduced revenue, though it had much less of a drop than Goldman. Citigroup's stock "only" fell 0.5%.

On balance, a dreary, lackluster story… so far.

But that's not the whole story.

Because for all the gloom and reduced expectations - all that - there's a silver lining that I think will pull our hopes for a new leg up out of the fire...


You May Hate This Big Bank, but Its Stock Just Flashed a Major "Buy Signal"

Every week, the Money Morning Stock VQScore™ system updates investors on the best stocks to buy right now. The system has a proven track record that might be the best on Wall Street.

As we noted last year, if you bought our top-rated stocks in May 2013, you would have made gains of more than 2,573% over the next five years. You read that right.

Every $1,000 you invested back then would be worth more than $25,000 today…

This is an incredibly powerful tool that I use regularly to identify breakout stocks. Earlier this week, I was somewhat surprised to see that one of the world's top financial giants has hit the "Buy Zone."

And we're taking full advantage of one of the biggest bank stocks on the market...