The Direxion Daily Financial Bull 3X ETF (NYSEArca: FAS) gained 5.62 percent on Wednesday as banks like Goldman Sachs and Bank of America reported positive earnings in what’s been a sold start to 2019 for the financial sector.
Goldman Sachs generated $6.04 per share in profit for the fourth quarter of 2018, versus the $4.45 per share estimate of analysts surveyed by data company Refinitiv. The investment bank also posted revenue of $8.08 billion, beating estimates of $7.55 billion.
Bank of America’s earnings came in at 73 cents per share, beating the 63 cents expected. Revenue was $22.7 billion versus initial estimates of $22.397 billion.
“For Bank of America, they performed well in their traditional banking areas,” said Ken Leon, an analyst at CFRA Research. “We did see better-than-peers deposit and loan growth. There was also healthy growth in consumer banking.”
“Overall, Goldman had a good quarter. We did not see a multibillion dollar reserve for Malaysia, but that’s going to be top of mind,” said Leon, referencing the 1MDB scandal.
Citigroup kicked off calendar fourth-quarter earnings season on Monday by reporting stronger-than-expected earnings. Citigroup reported $1.61 in profit per share, besting Wall Street expectations of $1.55 per share.