Goldman Sachs: Financial Winners & Losers

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

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

.)

NEW YORK (

TheStreet

) --

Goldman Sachs

(GS) - Get Report

and

Morgan Stanley

(MS) - Get 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.

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 Report

and

PNC Financial

(PNC) - Get 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 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

(FNM)

and

Freddie Mac

(FRE)

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 Report

was up 2.5% to $35.95,

Wells Fargo

(WFC) - Get Report

climbed 1.8% to $32.07,

JPMorgan Chase

(JPM) - Get Report

rose 1% to $45.80, and

Citigroup

(C) - Get Report

advanced 0.5% to $4.28.

-- Written by Robert Holmes in Boston

.

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