Core Insights - The Q4 earnings season for major U.S. banks began positively, driven by strong quarterly results from Goldman Sachs and Morgan Stanley, alongside impressive reports from top investment management firms like BlackRock [1] Group 1: Financial Performance - Goldman Sachs reported a Q4 net income of $4.62 billion, a 12% increase year over year, with adjusted EPS of $14.01, surpassing expectations by 19% [2] - Morgan Stanley's Q4 net income reached $4.4 billion, up 19% year over year, with EPS of $2.68, exceeding estimates by 11% [3] - BlackRock's Q4 EPS increased by 10% to $13.16, beating estimates by 6%, although net income fell 32% to $1.13 billion due to higher expenses [4] Group 2: Investment Assets - BlackRock experienced inflows of $342 billion, raising its assets under management (AUM) by 21% year over year to a record $14.04 trillion [7] - Morgan Stanley reported net new assets of $122 billion, with total client assets (TCA) increasing 26% to a peak of $9.3 trillion [7] - Goldman Sachs' assets under supervision (AUS) increased by $469 billion, a 15% rise to a record $3.61 trillion [7] Group 3: Stock Performance and Valuation - Goldman Sachs and Morgan Stanley stocks have outperformed the broader market, rising 53% and 39% respectively over the last year, while BlackRock shares increased by 17% but are down 4% from their all-time high [8] - Goldman and Morgan Stanley stocks are trading at under 19X forward earnings, offering a discount compared to BlackRock's 21X [9] - Morgan Stanley has a dividend yield of 2.09%, higher than BlackRock's 1.8% and Goldman's 1.64% [13] Group 4: Conclusion and Outlook - Morgan Stanley is currently favored due to its attractive stock price under $200 and better performance metrics compared to Goldman Sachs and BlackRock, which trade over $900 per share [15] - EPS revisions for FY26 and FY27 have been more favorable for Morgan Stanley, which holds a Zacks Rank 2 (Buy), while Goldman and BlackRock are at Zacks Rank 3 (Hold) [15]

Goldman Sachs logo on glass office facade, highlighting bank’s strong earnings and investment-banking momentum. Key Points Goldman Sachs's hot streak is continuing in 2026, with shares up over 10% in 2026. Goldman's Q4 financials require close examination as the company transitions its Apple Card business. David Solomon sees investment banking activity accelerating in 2026, buoyed by M&A sentiment under the Trump administration. Interested in The Goldman Sachs Group, Inc.? Here are five stocks we like ...

See more: China Underrated? Get China Equities in Emerging Markets ETF GEM Goldman Sachs has made some notable moves within that space. The firm announced last month that it would acquire one of the most active shops within options-based ETFs, Innovator Capital Management. The move brings Innovator's suite of "defined outcome†ETFs, often described as buffer ETFs, under Goldman Sachs' roof. Those ETFs use options and a combination of upside and downside limits to chase more predictable returns and income. Th ...

Core Viewpoint - Goldman Sachs Group, Inc. reported mixed fourth-quarter results for fiscal 2025, primarily impacted by markdowns and exit costs related to its consumer platform [1] Financial Performance - Net revenue decreased by 3% year over year to $13.45 billion, falling short of the consensus estimate of $13.79 billion [2] - GAAP earnings rose to $14.01 per share, an increase from $11.95 a year ago, surpassing the consensus estimate of $11.65 [2] Analyst Insights - Positive EPS revisions have been a key driver of stock performance, with Goldman exceeding consensus EPS estimates by approximately 15% on average over the last four quarters [3] - The company is positioned for potentially stronger-than-expected EPS growth in 2026 [3] Market Conditions - The analyst highlights solid quarterly results, increased momentum in M&A and IPO activity, a favorable regulatory environment, and management's focus on consistent growth and profitability as supportive factors [4] - For fiscal year 2026, a 15% growth in investment banking and a 3% growth in markets are projected, contingent on the absence of major macroeconomic shocks [5] Revenue Contributions - Investment banking, while contributing only about 15% to total revenues, generates additional revenue opportunities across financing, trading, and wealth management [6] - Fiscal year 2026 EPS estimates have been raised to $58.64 from $57.30, while fiscal year 2027 EPS remains unchanged at $67.30, which is 8.1% above consensus [6] Stock Performance - Goldman Sachs shares were down 1.15% at $964.60, trading near its 52-week high of $981.25 [7]

Core Viewpoint - Goldman Sachs reported strong earnings for the fourth quarter, exceeding earnings per share expectations but falling short on sales [1][2]. Financial Performance - The company posted quarterly earnings of $14.01 per share, surpassing the analyst consensus estimate of $11.65 per share [1]. - Quarterly sales amounted to $13.454 billion, which was below the analyst consensus estimate of $13.791 billion [1]. Strategic Insights - David Solomon, Chairman and CEO, highlighted a 60% revenue growth since the first Investor Day, a 500 basis point improvement in returns, and over 340% total shareholder returns [2]. - Solomon expressed optimism about client engagement and anticipated momentum to accelerate in 2026, suggesting a positive outlook for the firm's future activities [2]. Analyst Ratings and Price Targets - Keefe, Bruyette & Woods analyst Christopher McGratty maintained a Market Perform rating and raised the price target from $971 to $1,000 [4]. - Wells Fargo analyst Mike Mayo maintained an Overweight rating and increased the price target from $970 to $1,050 [4].

Core Viewpoint - Goldman Sachs reports that due to oversupply, oil prices may decline by 2026, but geopolitical risks related to Russia, Venezuela, and Iran will continue to increase market volatility [1] Group 1: Price Forecast - Goldman Sachs maintains its average price forecast for Brent crude and WTI crude at $56 and $52 per barrel respectively for 2026 [1] - The bank expects prices to drop to a low of $54 for Brent and $50 for WTI in the fourth quarter as OECD inventories rise [1] Group 2: Supply and Demand Dynamics - Global oil inventories are increasing, with a projected surplus of 2.3 million barrels per day in 2026 [1] - A reduction in oil prices may be necessary to curb supply growth from non-OPEC countries and support strong demand growth, unless there are significant supply disruptions or OPEC cuts [1]

Financial Performance - Goldman Sachs reported a net earnings increase of 12% year-over-year, achieving a profit of $4.62 billion, or $14.01 per share [1] - Morgan Stanley's earnings reached $4.4 billion, or $2.68 per share, compared to $3.71 billion, or $2.22 per share from the previous year [1] Investment Banking Trends - Goldman Sachs experienced a 25% year-over-year increase in investment fee revenues, while Morgan Stanley saw a 47% increase in its investment banking division [3] - Both banks indicated a significant increase in their investment fee backlog, suggesting a rise in pending deal-making activity [3] Market Environment - The Trump administration's deregulatory policies have positively impacted Wall Street, encouraging corporations to pursue mergers and acquisitions [2] - There has been a notable surge in investor interest in artificial intelligence companies and those benefiting from technologies like ChatGPT [2]

Market Overview - The market this week was driven by two main themes: the investigation rumors surrounding Federal Reserve Chairman Jerome Powell and the fluctuating geopolitical situation regarding Iran, impacting gold, silver, and oil prices [2][3] - The US dollar index faced initial pressure due to political uncertainty but later strengthened, supported by better-than-expected economic data and reduced rate cut expectations, aiming for a third consecutive week of gains [2] - Gold prices reached a historical high of $4642.85 per ounce before settling at $4583 per ounce, while silver peaked at nearly $93.70 per ounce, marking a nearly 30% increase this year [3] Federal Reserve Insights - Concerns over the independence of the Federal Reserve have led to speculation that it may adopt a more hawkish stance, as indicated by various financial institutions [5] - Multiple Federal Reserve officials emphasized the need to maintain independence and base decisions on data rather than political pressure, with some suggesting that current economic data does not support immediate rate cuts [12][13] Geopolitical Developments - The geopolitical situation in Iran has seen a temporary easing, with the US indicating a reduced likelihood of large-scale military action, although military readiness remains [14][15] - Diplomatic efforts from Middle Eastern countries have contributed to the de-escalation of tensions, with the US maintaining a stance of observing Iran's actions closely [15] Investment Strategies - The introduction of dynamic margin requirements for precious metals by CME is expected to increase market volatility, particularly affecting high-leverage traders [16] - The National Grid of China plans to invest 4 trillion yuan in the construction of a new power system during the 14th Five-Year Plan, marking a 40% increase from the previous plan [21] Corporate Earnings - Major banks such as Goldman Sachs and Morgan Stanley reported strong quarterly earnings, driven by a rebound in investment banking activities and robust trading revenues [27] - TSMC reported a record net profit of NT$505.7 billion (approximately $16 billion) for Q4 2025, with a 35% year-on-year increase, attributed to strong demand for AI-related chips [24]

Core Viewpoint - The article emphasizes the importance of dividend investing in quality blue-chip stocks, Business Development Companies (BDCs), and Real Estate Investment Trusts (REITs) as a strategy for building wealth and achieving financial independence. Group 1: Investment Strategy - The company focuses on a buy-and-hold investment strategy, prioritizing quality over quantity in its portfolio selection [1]. - The aim is to supplement retirement income through dividends within the next 5-7 years [1]. Group 2: Target Audience - The company aspires to assist hard-working lower and middle-class workers in building investment portfolios comprised of high-quality, dividend-paying companies [1]. - The goal is to provide a new perspective to help these investors reach financial independence [1].

Market Overview - U.S. stock futures are showing a positive trajectory, with major indexes expected to gain at the open due to strong corporate earnings and optimism in the AI sector [1][2] - The S&P 500 futures are up approximately 0.2% to 0.4%, Nasdaq 100 futures are leading with gains of around 0.5% to 0.6%, and Dow Jones futures are slightly higher, indicating a positive sentiment in the market [2] Oil and Treasury Yields - Oil prices have rebounded, with U.S. crude (WTI) trading around $59.95 per barrel and Brent crude at approximately $64.69 per barrel, both up around 1.5% following easing tensions in Iran [3] - U.S. Treasury yields are mixed, with the benchmark 10-year Treasury yield steady near 4.17% [3] Recent Trading Performance - Major U.S. indexes closed positively on Thursday, with the S&P 500 climbing approximately 0.3% to 6,944.47 points, Nasdaq Composite advancing around 0.2% to 23,530.02 points, and Dow Jones gaining about 0.6% to 49,442.44 points [4] - Despite recent gains, the major indexes are on track for weekly losses, with the S&P 500 down roughly 0.3%, Nasdaq off about 0.6%, and Dow Jones seeing a modest decline of approximately 0.1% [5] Upcoming Earnings Reports - The fourth-quarter earnings season is concluding, with several regional U.S. banks, including PNC Financial Services Group, M&T Bank, and State Street, set to report their quarterly results [6] Economic Data Releases - China is expected to report its 2025 economic growth data on Monday, forecasting an annual pace of around 4.5% [7] - U.S. inflation figures for December, including CPI and Core CPI, are scheduled for release next Tuesday, along with Industrial Production and Capacity Utilization data [7] AI Sector Developments - The AI sector is a significant market driver, with chip stocks like Nvidia and AMD seeing gains due to strong demand [8] - Taiwan Semiconductor Manufacturing's shares jumped over 4% following robust fourth-quarter results, further boosting optimism around AI [8] Banking Sector Performance - PNC Financial Services Group surged 3.2% to 3.5% in premarket trading after exceeding fourth-quarter targets, driven by higher interest income and fees [9] - M&T Bank also rose 1% after surpassing analyst forecasts, while Goldman Sachs and Morgan Stanley reported strong quarterly results, with shares surging over 4% and nearly 6%, respectively [10] Corporate News - Mitsubishi Corporation announced its acquisition of Aethon for approximately $5.2 billion [12] - Chevron Corporation reached a Final Investment Decision to expand production capacity at the Leviathan natural gas reservoir offshore Israel [12] - A U.S.-Taiwan trade deal involves $250 billion in new investments by Taiwanese semiconductor and tech companies in the U.S., aimed at strengthening the semiconductor supply chain [13]