Hedge fund positioning in healthcare stocks reached a record 10 percentage points overweight compared to the Russell 3000 index, Goldman Sachs said Friday. The rotation was primarily fuelled by soaring interest in biotech names. Recent weeks have seen investors pile into companies racing to introduce the first coronavirus treatment. Positioning […]

A “big setback” such as a second wave of virus infections could force the Federal Reserve to reconsider negative interest rates, Goldman Sachs strategist Zach Pandl said Thursday. Fed chief Jerome Powell reiterated Wednesday that such policy wasn’t on the table, but “policymakers are going to want to try new […]

Goldman Sachs expects the S&P 500 to close the year 2% higher, but not before enduring an 18% plunge over the next three months. The stock market’s recent leap from late-March lows is best attributed to investors’ “fear of missing out,” the team of analysts led by David Kostin wrote […]

The stock market’s swift rebound through April drove Goldman Sachs’ Risk Appetite Indicator to its biggest-ever increase, and the bank now warns “worsened” symmetry in the investing landscape will tear into returns. Stock prices “appear high considering the uncertainty over growth, policy, and inflation,” the team wrote Friday, and investors […]

Global oil storage could hit its limit as soon as mid-May, Goldman Sachs analysts forecasted in a recent client note. The commodity has been battered by the coronavirus’s hit to demand and a slow reaction to curbing supply, creating an unprecedented inventory glut around the world. Hitting the storage limit […]

In a note published Thursday morning, Goldman Sachs raised its Amazon price target to a street high $US2,900, implying 20% upside from current levels. Goldman sees the e-commerce giant reporting first quarter earnings “well above consensus expectations on revenue and profitability, while guiding 2Q above consensus on both metrics.” Goldman […]

Goldman Sachs downgraded Apple shares to “sell” on Friday, citing the economic slump for a near-term decline in device sales. The bank lowered its price target for Apple shares to $US233, implying a nearly 20% drop from Thursday’s close. Weakened demand will push iPhone sales down 36% in the second […]

A recent survey of institutional investors conducted by Goldman Sachs found that 50% believe the stock market has room to slide before a significant recovery. Three-quarters of the 1,800 investors surveyed still think equities are in a bear market, despite the S&P 500 reentering bull-market territory amid a torrid three-day […]

Profit growth for S&P 500 companies is set to slip 33% in 2020 as the coronavirus lockdown halts revenue streams, Goldman Sachs said. Earnings-per-share growth is historically stocks’ biggest upward driver, and the metric will slide by 123% in the second quarter amid the strictest nationwide containment efforts. Declines across […]

US gross domestic product will shrink by 34% in the second quarter as the coronavirus outbreak fuels a worse-than-expected hit to the labour market, Goldman Sachs said on Tuesday. The bank initially forecast a 24% hit to GDP in the period but lowered its estimate based on the “sky-high jobless […]

The coronavirus downturn differs significantly from past event-driven bear markets and stands to hit equities even harder, Goldman Sachs said Tuesday. The firm analysed 27 bear markets since 1880 to estimate the current slump’s length and depth. Though stocks’ current level matches declines seen in past bear markets, factors unique […]

Goldman Sachs lowered its annual S&P 500 earnings-per-share guidance to $US110 on Friday, forecasting a major slip for stocks’ biggest price driver. The note implies profits will contract 33% from their 2019 levels as the coronavirus’ economic threat intensifies. The stock market’s EPS recovery can look V- or U-shaped depending […]

The coronavirus has started to drive major downturns for key US industries. Initial hits to the world’s travel and tourism activity have started to bleed into the airline, hotel, and cruise sectors, new data shows. Restaurants have also suffered as cities order businesses to conduct only take-out and delivery orders. […]

The S&P 500 could fall another 20% before reaching its floor and rebounding through the rest of the year, Goldman Sachs analysts wrote Friday. The benchmark index has already been dragged into bear market territory by the coronavirus’ “unprecedented financial and societal disruption,” the analysts said. Continued supply chain issues, […]

The coronavirus pandemic will drag the US into a recession after a sharp decline to economic activity through the first half of the year, Goldman Sachs said Sunday. GDP growth will slow to a halt in the first quarter before shrinking 5% in the second quarter, the bank’s analysts wrote. […]

S&P 500 earnings will contract by 5% in 2020, Goldman Sachs projected on Wednesday, snuffing out the bull market’s most efficient driver. The bank cited lower oil prices from the new market conflict, diminished corporate guidance, and slashed interest rates for its downward revision. Goldman analysts estimated 0% profit growth […]

The coronavirus-fuelled factory shutdowns in China are disrupting commodities markets the most since the 2008 financial crisis, Jeff Currie, head of global commodities research at Goldman Sachs, wrote in a Friday note. The pause to major manufacturing efforts shrank oil demand by 4 million barrels per day, Currie wrote, adding […]

The 10-year Treasury yield slumped to a new record low on Monday as investors continued flooding safe havens and fleeing the coronavirus-shaken stock market. The bond’s yield slipped to 1.036% overnight before a slight bounce higher Monday morning. The 30-year bond’s yield also posted a record low after tumbling to […]

The S&P 500 is down 8% since February 21, and Goldman Sachs says the key index will continue dropping in the first half of the year. The bank estimates the S&P 500 will plummet to 2,900 – an additional 7% from Wednesday’s close – before recovering through the end of […]

A former intern at Goldman Sachs is suing the bank and several of its employees, alleging the firm condoned a “fraternity culture” that resulted in a traumatic brain injury. Patrick Blumenthal’s lawyers allege his manager – wealth advisor Julius Erukhimov – repeatedly forced the intern to drink and mocked employees […]

Goldman Sachs’ coronavirus base case expects the outbreak’s rate of infection to peak in the first quarter. The virus’ effect on China’s economy will only drive a “modest hit” to annual global growth of 0.1 to 0.2 percentage points, the bank said. The estimated hit to GDP would still allow […]

Goldman Sachs filed to create a new type of exchange-traded fund that wouldn’t disclose its holdings on a daily basis. The Goldman Sachs Multi-Asset Income ETF would invest across US stocks, American depository receipts, master limited partnership investments, and other ETFs, according to the Securities and Exchange Commission filing dated […]

The stock market is having room to run even higher this year despite a 29% gain in 2019 and warnings of a reversal,Goldman Sachs analysts wrote. Fund inflows are lagging the surge in US equities, leaving plenty of cash to fuel additional market records, the team said in a Tuesday […]

Goldman Sachs posted its fourth-quarter earnings Wednesday morning, missing the lowest analyst estimate for quarterly profit. The firm’s bottom line was hit by $US1.09 billion in litigation expense for the quarter, more than double what it absorbed in the fourth quarter of 2018. The bank beat expectations for revenue, with […]

Goldman Sachs is set to pay a fine nearing $US2 billion and admit guilt to the US government to resolve an investigation into its 1MDB scandal, The Wall Street Journal reported Thursday. The deal would involve Goldman admitting it ignored warning signs as billions of dollars were stolen from a […]

WeWork arranged a $US1.75 billion letter of credit with Goldman Sachs on Tuesday as the startup looks to recover from the brink of bankruptcy, Reuters reported. The credit line is in the process of being syndicated and part of SoftBank’s $US9.5 billion bailout plan for the coworking company. The full […]

Goldman Sachs is cutting 98 jobs across its operations,according to a filing. Employees have already been notified of the cuts, which are for “economic reasons” amid the Wall Street bank’s net income dropping 20% for the first quarter. The bank’s bonus pool also shrank after Goldman missed analyst revenue targets […]

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