Goldman Sachs shares were off 1.3% as its trading business slowed in the second quarter. Earnings came in below consensus.
“Clearly a challenging quarter and expect the stock to be weak, but with the board upping the buyback authorization by 75 million shares, management putting expense initiatives in place, and the firm well positioned as macro and regulatory conditions improve, as well as an attractive valuation, we maintain our buy [rating on the stock],” Deutsche Bank analysts said in a note.
Bank of America and Goldman Sachs together represent nearly 10% of the financial ETF’s portfolio. Elsewhere in bank earnings, Zions (NasdaqGS: ZION) shares fell almost 4% after it reported results.
The financial ETF is down nearly 8% so far in 2011 as banks have been hit by worries over the economy and new capital rules.
Financial Select Sector SPDR Fund
Bank of America
Goldman Sachs
Stock charts source: StockCharts.com.