Offices To Re-open (Rotationally)
Leading US investment bank Goldman Sachs announced this week that it will be reopening its offices. Staff members will return to work in the coming weeks following months of closures due to the COVID-19 pandemic.
In a note distributed to staff members, the bank’s CEO David Solomon said:
“Over the coming days and weeks, colleagues in those offices will hear from their divisional, business and/or local leaders about what to expect for the months ahead. This includes team rotations in the office where possible, with the goal of giving everyone who can do so an opportunity to come in to their office.”
The move echoes that of rival investment banks over recent weeks. JP Morgan announced such plans last month. The company now allows staff members to shift between working from home and working from the office.
Solomon went on to say:
“Importantly, this rotational approach will not look the same for everyone, as we each navigate unique personal responsibilities – for example, planning around adjusted school schedules, managing personal and family health conditions, and not being comfortable commuting to the office during peak hours, among many other considerations.”
Q2 Earnings Miss
Shares in the US investment bank have been lower over the last month following a weak Q2 earnings report. Goldman reported Q2 earnings per share of $0.55. This sorely missed Wall Street estimates of a $3.90 reading. Furthermore, it underscored the issues faced by the bank during the height of the pandemic. The bank posted revenues of $13.30 billion over Q2.
Commenting on the results, the bank’s CEO David Solomon said:
“This quarter demonstrated the continued dedication of the people of Goldman Sachs to helping our clients navigate a very challenging environment while working remotely or returning to offices that are quite different than the ones we left earlier in the year. We also continue to be grateful for those working hard to contain the pandemic and limit its human and economic costs. Our strong financial performance across our client franchises demonstrates the inherent benefits of our diversified business model.”
Solomon further went on to say:
“The turbulence we have seen in recent months only reinforces our commitment to the strategy we outlined earlier this year to investors. While the economic outlook remains uncertain, I am confident that we will continue to be the firm of choice for clients around the world who are looking to reshape their businesses and rebuild a more resilient economy.”
Goldman Shares Continue Within Contracting Triangle
The current consolidation in Goldman’s share price sees the market ranging between support at the 196.37 level and resistance at the 222.59.
More recently, price action has been framed by the contracting triangle pattern. This further reflects the lack of momentum in the market.
Should price break below the 196.37 level, the next support zone to watch is down at the 165.33 region.