JPMorgan Results Bode Well for Goldman, Citi: KBW

NEW YORK ( TheStreet) -- JPMorgan Chase's ( JPM) third-quarter investment banking and trading results are positive for Goldman Sachs ( GS) and Citigroup ( C), according to a report published Friday by Keefe, Bruyette & Woods.

Equity trading results were down 4% vs. the second quarter but up 20% vs. a year ago. Fixed income trading revenue fell 16% vs. the previous quarter and 8% vs. the previous year, the report stated.

Those figures suggest "a positive read-across" to Goldman and a "modestly positive read-across" to Citi relative to KBW's earlier expectations. The results imply Goldman's earnings should be $2.93 vs. KBW's official estimate of $2.80, while Citigroup's estimate should move to $1.20 per share from $1.16.

Goldman shares were up 0.56% to $158.90 in early trading, while Morgan Stanley shares were down 0.24% to $49.15. Citi will report third-quarter results Oct. 15 while Goldman will report Oct. 17.

Strong advisory revenue, meanwhile -- compared to the overall market -- suggest market share gains for JPMorgan and a slight negative read across for M&A advisory-focused firms, according to KBW's report. KBW did not name any in its report, but they include Lazard ( LAZ), Evercore ( EVR) and Greenhill ( GHL), among others.

-- Written by Dan Freed in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

If you liked this article you might like

Citigroup Gives CEO Corbat 48% Pay Raise as Profitability Misses Goal

Citigroup Gives CEO Corbat 48% Pay Raise as Profitability Misses Goal

Worst-In-Class Goldman Sachs CEO Blankfein Gets 9% Pay Raise

Worst-In-Class Goldman Sachs CEO Blankfein Gets 9% Pay Raise

Here's One Hint That S&P 500 Stocks Are a Screaming Buy

Here's One Hint That S&P 500 Stocks Are a Screaming Buy

Bitcoin Today: Prices Rally Ahead of Chinese New Year, Moody's Weighs in on Risk

Bitcoin Today: Prices Rally Ahead of Chinese New Year, Moody's Weighs in on Risk

Federal Reserve Who? Stocks Have Historically Done Great With Rising Rates

Federal Reserve Who? Stocks Have Historically Done Great With Rising Rates