Goldman Sachs Group Inc. shares fell 4% Wednesday after Chief Executive Officer David Solomon warned of softer fixed-income trading and higher expenses during the third quarter. Speaking at a Barclays conference, Solomon said the bank's fixed-income, currencies and commodities business has been weaker on a relative basis during the quarter, though overall activity levels have been very high, and equity trading has remained very strong. The CEO said costs are expected to be higher given elevated client activity levels during the period, and Goldman has also accelerated some technology investments that will contribute to increased expenses. The comments gave investors an early glimpse into the bank's third-quarter performance ahead of its earnings report, with the cautionary tone on fixed income contrasting with strength in equity markets during the quarter. Goldman's trading business has been a key driver of revenue in recent quarters, making the uneven performance across its trading divisions notable for investors assessing the bank's near-term outlook.
Goldman Sachs Group IncCEO Solomon warned of softer FICC trading revenue and higher Q3 expenses, weighing on the bank's near-term outlook.
