The relentless rally in bank stocks like JPMorgan Chase (JPM) and Bank of America (BAC) had to end. On September 10, Goldman Sachs (GS) stock fell by 4.39% to close at $467.13. Shares are now on a firm downtrend since peaking at around $515.
Goldman’s CEO, David Solomon, said on Monday that trading revenue may fall by 10% this quarter.
JPM stock fell by over 5% and risks trading lower today. COO Daniel Pinto said that net interest income will fall below analyst estimates. Value investors may take advantage of the stock’s discount. JPMorgan is a well-run firm.
In the energy sector, firms like Devon Energy (DVN), Antero Resources (AR), Exxon Mobil (XOM), and APA Corporation (APA) are trading lower. WTI crude prices continue to fall. On Tuesday, it added more than 3% in declines to settle at $65.75 per barrel.
OPEC expects oil demand to grow this year. However, it expects production to increase by 2.0 million barrels per day. Although this is 80,000 barrels less than expected, oil prices did not hold. Economists blame China for the downward revision. Yet China’s real estate downturn is nothing new.
Investors may bet against the bearish narrative about oil. Interest rate cuts may help lift economic activity, which increases energy demand.
