It looks to be a bullish day in the stock market as both Lehman Bros. and Goldman Sachs both beat earnings estimates. Look for Wall St. to breath a big sigh of relief and move stocks higher as long as the Fed cooperates and cuts .75.
What I find interesting in the earnings reports is both companies reported revenues were down about 30% and profits were down about 50%. I have always believed that going forward its going to be harder for these firms to generate revenue because the housing game is over and there are not as many M&A deals because there are no credit markets!!
Goldman reported they consulted on $150 billion in M&A deals in the quarter vs. $300 billion the same quarter last year. Wall St cheered these numbers with beaten down expectations. I don't see any of the investment banks growing revenues going forward without the housing ponzi scheme and the credit markets creating deals for them to help put together. This will create problems down the road.
Quiet morning. Everyone is waiting for the Fed. I will be back after the announcement.