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| Currency | US Dollar |
|---|---|
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| Canadian Dollar to US Dollar | 0.945001 |
Goldman results top expectations
A bigger-than-expected rise in producer prices offsets the company's stellar results. Johnson & Johnson beats the Street. Oil rebounds.
Updated at 1:40 p.m. ET
Goldman Sachs (GS) posted better-than-expected second-quarter profits this morning, but investors were sticking to the sidelines this afternoon after Monday's broad rally.
Goldman said it earned $3.44 billion, or $4.93 per share, in the quarter, well above last year's $2.05 billion, or $4.58 per share. The results also topped analysts' expectations of $3.57 per share.
But stocks were essentially flat after a report showed that producer prices rose more than expected in June. At 1:40 p.m. ET, the Dow Jones Industrial Average ($INDU) was up 5 points to 8,336 after surging 185 points on Monday. The Nasdaq Composite Index ($COMPX) had added 3 points to 1,796, and the Standard & Poor's 500 Index ($INX) had gained 2 points to 903.
The Producer Price Index increased 1.8% last month, nearly double economists' expectations and up from a 0.2% gain in May. It was the biggest monthly increase since November 2007.
Retail sales rose 0.6% last month for the second month in a row.
More on Goldman's report
Revenue surged 47% to $13.8 billion from $9.4 billion in the second quarter of 2008 and well above the consensus estimate of $10.7 billion.
Shares of Goldman were down 61 cents to $148.83 this afternoon. The stock had gained 5.3% on Monday after being upgraded to "buy" from "neutral" by Meredith Whitney Advisory.
"These are very strong numbers," Jeff Harte, managing director at Sandler O'Neill, told CNBC this morning. "I think this is good news for the other players in the industry" as well, Harte added.
Johnson & Johnson reaffirms guidance
Drug giant Johnson & Johnson (JNJ) this morning posted second-quarter earnings of $3.2 billion, or $1.15 per share, down from $3.3 billion, or $1.17 per share, in the same period last year. Analysts had been looking for $1.11 per share.
Revenue fell 7.4% to $15.2 billion.
Shares were up 31 cents to $58.03 this afternoon after the company confirmed its 2009 adjusted earnings forecast of $4.45 to $4.55 per share.
Oil in focus
Crude oil turned lower this afternoon, falling 5 cents to $59.64 a barrel. Analysts are still bearish about both the supply and demand pictures, CNBC reported.
The Organization of Petroleum Exporting Countries boosted production in June for the third month in a row. June production from OPEC rose to 28.44 million barrels a day from 28.40 million barrels in May, according to its monthly report.
The market's rally on Monday "was seen as a potential sign of economic recovery -- and ultimately, higher energy demand," Cameron Hanover oil analyst Peter Beutel wrote in his daily note to clients this morning.
Oil lost 11% last week. It hit an all-time high of $147.27 on July 11, 2008.
Intel on tap after the close
Technology bellwether and Dow component Intel (INTC) will report its second-quarter results after the market closes today. Analysts are looking for earnings of 7 cents per share, down from 28 cents per share in the same quarter last year. Wall Street is looking for revenue of $7.27 billion, which would be a 23% drop from last year.
But things might pick up for the chip market in 2010, according to the latest forecast from the Semiconductor Industry Association. In its June forecast, the SIA said it expects global chip sales to tumble 21% this year to $195.6 billion.
Another tech company, Dell (DELL), warned late Monday that it expects a "modest decline" in second-quarter gross margins because of the continued slump in demand for computer products.
Goldman and all those that are now out of TARP are crooks. At least three institutions (US Bank, Morgan Stanley, & Goldman Sachs) are paying less than .01% interest for Money Market Investors.
Yet other non Tarp banks are paying above .5%. Based on that Goldman Sachs is under performing based on the advantages they have taken from customers and the government.
Instead of paying their employees they should go back and pay the Money Market investors all of their earnings, and we will call it even.
Goldman Sachs has an ownership interest in the Federal Reserve, who can print money at will, creating bubble after bubble, and give it to anyone it wants without our government being allowed to audit it....
Goldman Sachs ex-CEO is ex-Secretary of Treasury....
The current Treasury Secretary Geithner was head of the Federal Reserve Bank of New York and a tax cheat...
Bailout and newly printed money is being used to, in Borat-esque style, "make good the glorious bank balance sheets of the Street of Wall" which lets them foreclose on people at will. Not to mention that it lets them sit on foreclosed houses and manipulate the housing market by controlling supply of houses (meanwhile the houses they aren't selling fall into decay). Where is the SEC on that? Oh, well it's not manipulation if government or their special interests do the manipulating.
How would you ever expect Goldman NOT to turn a profit?
Banks HELP lenders FIND borrowers and take a percentage (in a free market at least). They DON'T solely exist to 'make loans' or 'extend credit'.
Too bad the FDIC makes it impossible to say "F*** Y**" and remove your deposits to really hurt a bank...and we wonder why they don't care about us...
Goldman Sachs' have that name because....
We got the Gold, and we got you by the Sachs' 
lets all not forget we changed the accounting rules. so lets dig a bit deeper to find the real earnings!!!
have they paid back their debt in full to the US, if not then their earnings dont mean a damn thing,
remember boys and girls your fifth grade math. It still applies regardless of how Goldman Sachs wants to paint it
"Can somebody please explain how Goldman managed to get so much money without any oversight into its acquisition?"
That is fairly easy to explain. If you stand very quietly you should probably feel a certain rather small place(one usually not exposed to view) on you body that is extremely sore.
You got s*&@** and don't even realize it.
When every Administration offical in the Whitehouse has a Goldman past and the president was even financed by them you can damn well do and say for your profit anything you want ;for you are above the law and in most cases are making it. You can also lie ,cheat and swindle the American public and take and do what you want with their money under the guise of "too big to fail".
Time to get big money out of the running of the country and career politicans too. Thanks Obama for the great "CHANGE" . Oh I get it "CHANGE" out of our pockets and more "CHANGE" into theirs.
Let me understand this. Goldman Sachs in September 2008, was in danger of Collapse. Former CEO of Goldman Sachs worth $700 Million, US Treasury Secretary Henry Poulson needed $700 Billion tax payer dollars from Congress in 30 days to prevent a repeat of the Great Depression. When asked, how the $700 Billion was determined, answered "It is Complex:. Now, 10 months later, and three quarters later, the profits are in and they are outrageous even after paying $700,000 per Goldman Sachs employee bonuses. We learn, what Henry Poulson meant by "Complex".
We, the taxpayer, my kids and grandkids have "BEEN HAD" by the scam of the Twenty First Century. Goes to show, it Pays, and pays handsomely, to have had the Former CEO of Goldman Sachs in charge of the Money Printing of the US Treasury.
StockScouter data provided by Gradient Analytics, Inc.
Quotes supplied by Interactive Data.
MSN Money's editorial goal is to provide a forum for personal finance and investment ideas. Our articles, columns, message board posts and other features should not be construed as investment advice, nor does their appearance imply an endorsement by Microsoft of any specific security or trading strategy. An investor's best course of action must be based on individual circumstances.
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