FINANCE

Goldman, Citicorp report glistening third quarter earnings

Third-quarter earning reports were released on Thursday, containing good news for Goldman Sachs and even the beleaguered Citigroup. This news comes a day after the Dow Jones broke the 10,000 point mark for the first time in a year.

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After many false dawns in the past year, the global financial outlook has been buoyed by several very promising signs. The New York Stock Exchange closed Wednesday at 10,015.86, marking the first time in over a year that it rose above the 10,000 mark. Other global markets followed suit.

On Thursday, figures were released for the third quarter of the fiscal year, with a number of surprises.

Investment giant Goldman Sachs posted a third-quarter profit of 3.19 billion dollars, more than triple the figure from the same period in 2008.

The company has been one of the most resilient Wall Street firms in the financial crisis. It received 10 billion dollars in bailout money at the end of 2008, but it repaid the US Treasury in the second quarter with dividends.

The beleaguered Citigroup topped expectations, posting a third-quarter profit of 101 million dollars. However, because of special dividends required from a 45 billion dollar government bailout, the results amounted to a loss for shareholders of 27 cents per share. But that was better than an expected loss of 38 cents per share.

Scott Marcouiller at Wells Fargo Advisors told AFP that investors must decide whether to cash in their shares for profits or keep their investments to push the rally further. He said, “The crossing of the 10,000 level sets up a potential near-term turning point for stocks.”

Whether these gains augur a more permanent upswing lies partly in the hands of investors and their confidence in markets. Even so, stock indices and profits are only partial indicators of overall economic health.
 

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