Goldman Trounces Earnings Estimates

What a quarter by Goldman Sachs (GS). Truly remarkable. Why many were worried that they would miss earnings estimates, the company beat the consensus by a whopping $1.76. Earnings rose +88% yr/yr, while revenues rose +63%.

One of the surprising aspects was that its significant losses on subprime loans and securities were more than offset by gains on short mortgage positions. This was something that no one was talking about, but that I highlighted on TheStreet.com yesterday. Great move.

The markets are slighly weak in early trading. Oil is higher again ($82.25). Bond yields are also slightly higher, with the 10-year at 4.59%.

Asian markets were higher overnight, but the Yen is also moving higher today. This has the potential to weigh on our markets, if recent history repeats itself.