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Goldman Sachs: Financial Winners & Losers

Goldman Sachs and Morgan Stanley rose Tuesday despite an analyst cutting earnings estimates on the banks.


Goldman Sachs, Morgan Stanley and other stock prices brought current in this update




) --

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. Report


Morgan Stanley

(MS) - Get Morgan Stanley Report

were among the winners of the financial sector Tuesday even after an analyst cut earnings estimates on both banks.

Goldman and Morgan were up 0.1% and 0.6%, respectively, despite a Citigroup analyst's research note that said both banks saw softness in first quarter equity underwriting and lighter equity trading activity. Citigroup said those negatives would be partially offset by fixed income, currency and commodities trading.

Still, Citigroup lowered its estimate for Goldman's first-quarter earnings to $4.45 a share from $4.55 a share. Citigroup also cut its estimate on Morgan's first-quarter earnings to 58 cents from 72 cents. The bank also cut its 2010, 2011 and 2012 full-year estimates for Morgan Stanley.

Goldman Sachs shares were up 0.1% to $173.34. Morgan Stanley gained 0.6% to $29.46.

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Meanwhile, Wells Fargo Securities analysts upped their view on large-cap U.S. banks to market weight, citing valuation, less fear of regulatory changes and more clarity on asset-quality trends.

Wells Fargo added that

Bank of America

(BAC) - Get Bank of America Corp Report


PNC Financial

(PNC) - Get PNC Financial Services Group, Inc. Report

are best positioned to gain from a bigger focus on normalized earnings.

Bank of America was gaining 1% to $18.31, and PNC Financial was rising by 0.6% to $62.05.

Elsewhere, UBS initiated coverage of

Charles Schwab

(SCHW) - Get Charles Schwab Corporation Report

with a buy rating and $24 price target. UBS said the company should benefit from rising interest rates. Schwab shares were lately up 1.9% to $19.23.

Away from analyst moves,

Fannie Mae



Freddie Mac


rose nearly 1% each after a report in

The Wall Street Journal

that the Federal Housing Finance Agency will force both mortgage giants to trade interest-rate swaps through central clearinghouses instead of through private deals.

Fannie Mae was up 0.9% to $1.07, and Freddie Mac gained 0.4% to $1.30.

Among other financial stocks trading higher Tuesday,

American International Group

(AIG) - Get American International Group, Inc. Report

was up 2.5% to $35.95,

Wells Fargo

(WFC) - Get Wells Fargo & Company Report

climbed 1.8% to $32.07,

JPMorgan Chase

(JPM) - Get JPMorgan Chase & Co. Report

rose 1% to $45.80, and


(C) - Get Citigroup Inc. Report

advanced 0.5% to $4.28.

-- Written by Robert Holmes in Boston


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