Why Goldman Sachs Group Stock Slumped 5% Today

But that changed when Goldman Sachs (gs) reported first-quarter earnings that missed Wall Street's expectations Tuesday.

A noteworthy decline in Fixed Income, Currency, and Commodities (FICC) income stunned analysts, as the company reported earning just $1.69 billion from trading activities, down from $2 billion in the prior quarter. The lender beat analysts' estimates for profit and revenue.

EPS of $5.15 a share vs. $5.31 a share expected by Thomson Reuters analysts' consensus. Bank of America said earlier Tuesday that its trading revenue climbed, while JPMorgan Chase and Citigroup last week reported revenue from that business exceeded estimates. Goldman, the fifth-largest US bank by assets, blamed weakness in commodities, currencies, and credit revenue, as well as lower commissions and fees from equities trading.

"The operating environment was mixed, with client activity challenged in certain market-making businesses and a more attractive backdrop for underwriting in our investment banking franchise", CEO Lloyd Blankfein said in a news release. While Goldman shares soared on investors' hopes that Trump would slash costly financial regulations and spur economic growth that would lift interest rates, the bank's first-quarter earnings illustrated that the President's promises have not yet been a silver bullet for Wall Street.

Net earnings, meanwhile, came in at $2.26bn for the first three months of the year. Non-interest income for the quarter rose 37.67 percent over the past year period to $7,510 million.

The bank also made $1.46 billion in its investing and lending business in the quarter, a sharp increase from the $87 million it made in the same period a year earlier.

He explained that Goldman's clients traded less with the bank because markets were calmer and because it does not lend as much as competitors.

Goldman said its net interest income fell 42 percent year-on-year.

Goldman Sachs also announced the repurchase of an addition 50 million shares of common stock and raised its quarterly dividend to 75 cents from 65 cents per common share.

Goldman Sachs reported first-quarter earnings Tuesday that missed on both the top and bottom line as trading revenue disappointed.

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