NEW YORK ( TheStreet) -- Goldman Sachs ( GS)and Morgan Stanley ( MS) will likely report weakness in fourth quarter fixed income trading, according to a report from Calyon Securities analyst Mike Mayo. Mayo cut his fourth quarter earnings estimates on Goldman to $3.75 per share from $4.20, while chopping his Morgan Stanley projection to 40 cents per share from 61 cents. Despite weakness in rates products due to "global macro concerns and volatile markets," Mayo expects the banks to show strength investment banking. The reduced estimates bring Mayo below the average of the analysts surveyed by Thomson Reuters, who are looking for 41 cents from Morgan Stanley and $4.11 from Goldman. Goldman and Morgan Stanley shares were down 0.83% and 1.30% in mid-afternoon trading Wednesday, underperforming rivals like Citigroup ( C), Bank of America ( BAC), Wells Fargo ( WFC)and JPMorgan Chase ( JPM). -- Written by Dan Freed in New York.