David Solomon, chairman and CEO of Goldman Sachs, speaking on CNBC's Squawk Box at the World Economic Forum annual meeting in Davos, Switzerland, on January 17, 2024.
Adam Galici | CNBC
Goldman Sachs It is scheduled to report its third-quarter results before the opening bell on Tuesday.
This is what Wall Street expects:
- Earnings: $6.89 per share, according to LSEG
- Revenue: $11.8 billion, according to LSEG
- Trading Income: Fixed Income $2.91B, Equities $2.96B, per StreetAccount
- Investment banking revenue: $1.62 billion, per StreetAccount
- Asset and wealth management: $3.58 billion, by StreetAccount
To what extent will falling interest rates help Goldman Sachs?
Over the past two years, the Federal Reserve's tightening campaign has created a less than ideal environment for investment banks like Goldman.
Now that the Federal Reserve is lowering rates, that positions Goldman to benefit as corporations that have waited on the sidelines to acquire competitors or raise funds begin to take action.
Goldman's asset and wealth management division is also positioned to benefit from rising asset values across markets as rates decline.
Last week, rival JPMorgan Chase set high expectations with better-than-expected commercial and investment banking results, factors that helped the bank beat earnings estimates.
Wells Fargo also beat estimates on Friday thanks to its investment banking division.
This story is developing. Please check back for updates.
