This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Goldman Sachs Gains as China Grows: Upgrade Winner

NEW YORK ( TheStreet) -- Goldman Sachs (GS - Get Report) was the winner among the largest U.S. banks on Thursday as shares rose 1.4% to close at $159.96.

The broad indices ended higher after HSBC released its flash China Purchasing Managers Index for October. The reading came in at 50.9 rising from 50.2 in September, reaching a seven-month high. A reading above 50 indicates expansion.

HSBC chief economist for China Hongbin Qu said in a statement that increases in the China PMI came "on the back of broad based modest improvements," and implied that "China's growth recovery is becoming consolidated into 4Q following the bottoming out in 3Q."

"This momentum is likely to continue in the coming months, creating favorable conditions for speeding up structural reforms," Qu added.

Back home, the Department of Labor reported that first-time unemployment claims for the week ended Oct. 19 totaled 350,000, down 12,000 from the previous week's revised total of 362,000. Economists polled by Thomson Reuters on average expected new jobless claims to come in at 343,000.

A positive market reaction following a somewhat disappointing unemployment report is not surprising, as investors continue to hope the Federal Reserve will maintain its "QE3" stimulus policy, which includes net monthly purchases of $85 billion in long-term bonds. The bond purchases have continued since September 2012. The Federal Open Market Committee next meets on Oct. 29-30, and will release a policy statement on Oct. 30.

The KBW Bank Index (I:BKX) on Thursday was down slightly to 64.66, with the 24 index components evenly split between winners and losers.

Aside from the continuing coverage of the expected groundbreaking settlement between JPMorgan Chases (JPM - Get Report), the Department of Justice and regulators -- which could have a major effect on private investors' plans to sue the company -- the major banking news on Thursday was the Federal Reserve's proposal for new liquidity requirements for large U.S. financial institutions.

The Fed finally proposed rules to implement the Basel III liquidity standards, and taking a self-described "stringent" approach, by requiring full compliance the rules by January 2017, instead of January 2019, as per the Basel agreement.

Goldman Sachs

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
GS $189.79 0.00%
JPM $61.28 0.00%
AAPL $129.00 -1.10%
FB $78.97 0.00%
GOOG $558.40 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs