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.

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