Stock trading actively: The Goldman Sachs Group, Inc. (GS)

Bank of America's net income rose 81.5 percent to $4.9 billion in the first three months of the year, from $2.7 billion the same period a year ago.

Growing investment banking fees helped Goldman Sachs to nearly double its quarterly profit but the Wall Street lender missed analysts' estimates after failing to capitalise on a trading boom.

Earlier, Goldman Sachs reported first quarter earnings that came up short, missing estimates by a distance.

Consumer banking revenue rose 5% year over year to $8.3 billion on the back of strong growth in deposits, although mortgage banking income ticked lower.

Goldman's trading desks struggled in the first quarter, a sharp contrast to its competitors who all reported gains in trading last quarter and set investors' expectations that Goldman would perform just as well or better.

Goldman chairman and chief executive Lloyd Blankfein said the environment was "mixed" and client activity was "challenged".

Yet Goldman failed to get the same trading bump as rivals J.P. Morgan and Citigroup last week. Oppenheimer Holdings Inc. reiterated an "outperform" rating and issued a $256.00 price target (up previously from $252.00) on shares of Goldman Sachs Group in a report on Tuesday, January 24th.

Price of gold surges to five-month high
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.50 per cent to 842.41 tonnes on Tuesday. Palladium slipped 0.2 percent to $799.45 after touching its weakest in more than a week at $784.72 in the previous session.

Goldman shares were down 2.8 percent at $219.95 in premarket trading.

Despite strong gains in USA stocks at the beginning of this year which boosted the markets revenues of most big banks, Goldman Sachs did not benefit from trading almost as much as investors had expected during the quarter. FMR LLC now owns 9,910,801 shares of the investment management company's stock valued at $2,373,141,000 after buying an additional 3,722,471 shares in the last quarter.

Analysts on average had expected earnings of $5.31 per share, according to Thomson Reuters I/B/E/S.

Investment-banking revenue, which includes fees from underwriting as well as advising on mergers, climbed 16% in the quarter.

Firm wide, the bank's had net revenue of $8.03 billion compared with $6.34 billion in the same period a year earlier. Given that its peers found universal success in trading during the first quarter, Wall Street wasn't happy to take that answer at face value, perhaps believing that the decline in trading income may be more than just a one-time occurrence. Goldman's shares tumbled 4.2 percent to $216.80.

Until Tuesday, Goldman Sachs stock was arguably the poster child for the Trump Bump: During the stock market rally since the President was elected, the bank had contributed more to the rise of the Dow Jones industrial average than any other company.

Goldman has historically relied more on trading than other big banks, but has been trying to shift to relatively stable businesses like investment management and lending.

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