NEW YORK (CNNMoney.com) -- Goldman Sachs shares gained Tuesday even as lawmakers grilled the Wall Street firm's executives on the role investment banks played in the financial meltdown and on a day the broader stock market tumbled.
The firm's stock gained nearly 2.7% early Tuesday morning and ended the day 0.7% higher, shrugging off the market's concerns over European debt that sent the Dow (INDU) plunging more than 200 points and gave the S&P 500 index (SPX) and Nasdaq composite (COMP) double-digit losses.
Meanwhile, Goldman Sachs (GS, Fortune 500) chief executive Lloyd Blankfein and other top players, including Fabrice Tourre, said they did nothing wrong at a Senate committee hearing about their role in the financial crisis.
"I think Goldman's stock rose because it took a massive fall yesterday in anticipation of the hearing today," said Rochdale Securities analyst Richard Bove.
The company's stock has been struggling for the past two weeks since the Securities and Exchange Commission charged the New York-based company with defrauding investors in the sale of a complex mortgage investment. It's down 17% since the suit was filed April 16.
"It's become evident that Goldman hasn't done anything that would result in any action against the company other than the SEC suit, which is starting to look weaker and weaker," Bove said. "There's a belief that today was the peak of the storm."
Once the SEC's case against Goldman Sachs ends up in court, neither party will be able to discuss the proceedings in public.
"We won't get a barrage of information coming out of Goldman or any attacks from the other side. The whole thing will go away until there's a decision," Bove said. "The only question left to ask is whether or not Goldman retains its customers. As of today, I would assume Goldman has a lot of customers."
Index | Last | Change | % Change |
---|---|---|---|
Dow | 32,627.97 | -234.33 | -0.71% |
Nasdaq | 13,215.24 | 99.07 | 0.76% |
S&P 500 | 3,913.10 | -2.36 | -0.06% |
Treasuries | 1.73 | 0.00 | 0.12% |
Company | Price | Change | % Change |
---|---|---|---|
Ford Motor Co | 8.29 | 0.05 | 0.61% |
Advanced Micro Devic... | 54.59 | 0.70 | 1.30% |
Cisco Systems Inc | 47.49 | -2.44 | -4.89% |
General Electric Co | 13.00 | -0.16 | -1.22% |
Kraft Heinz Co | 27.84 | -2.20 | -7.32% |
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