Goldman Sachs Joins the Dow

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Sept. 20 (Bloomberg) -- Graham Fisher's Josh Rosner, Stutland Equities Dan Deming and Bloomberg's Julie Hyman discuss three new additions to the Dow Jones index. They speak with Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

2004, the dow adds three new members to its index.

These are, nike, goldman sachs, replacing bank of america, hewlett-packard, and alcoa.

At the intersection of goldman sachs, it's a deal dominator.

The stock is dominating as well, up 30% so far this year.

Josh rosner with the strategy.

Julie, why goldman sachs?

The company is a top adviser on global mergers and acquisitions.

It already led last year and the year before that.

It widened its lead this year.

Earnings actually doubled at goldman sachs in part because of underwriting and in part because of advising on m&a. it actually did well on fixed income trading as well, which is not something that was necessarily true at some of its competitors.

You talk about increased the shares have had year to date.

The shares up about 30%. s&p financial index about 25%. one competitor has outpaced it, morgan stanley.

Shares are up 48%. it is sort of in the middle of the pack if you look at the individual gains we have seen.

How does goldman still succeed on the trading front in this increasingly regulatory sentiment in the environment?

It is outperforming the large, two big peer to group because of the -- you're not saddled with consumer lending.

You have a pure play -- peer play on the old fashion investment banking.

The way i'm looking at it right now, there are some positives and negatives out there.

You are seeing the nice feather in the cap with the ipo with the twitter ipo coming up.

You're talking about investment banking and opportunities they have their.

Year-over-year, the activity has been down.

It looks like trading volumes are down heading into september.

That might cause a hiccup in this most recent report.

I'm looking to buy some time.

I'm looking at putting on a risk reversal in january, selling january and buying a 175 call.

It gives the opportunity to present -- participate to the upside should a breakthrough.

You had to participate on the downside -- get to participate on the downside.

Morgan stanley had the facebook tobacco.

Do you think goldman was able to benefit from that -- debacle.

Do you think goldman was able to benefit from that?

In terms of the short term things to be watching for with this certain amount of concern, the fed has to make incisions as to whether the investment banks are allowed to remain in the commodities business.

I will be a more meaningful decision to morgan stanley's business, and meaningful to goldman.

Something else you want to be aware of, public-relations wise, the improvement you had seen -- it seems jpmorgan has taken over as the wall street enemy.

When you look at the banks as relative to one another, that is something to be aware of, the goldman sachs no longer has that -- is an excellent point.

It does seem as though we are talking about jpmorgan daily in the news.

Goldman sachs it is.

Do you have a buy on it?

No, i think it is a wait and see.

Some of the headwinds regulatory lee are worth waiting on -- regulatorily are worth waiting for.

There is possibility for a pullback as we roll in through the end of the year.

Longer term i still want to be long the stock.

Think you so much.

Are closer is an insight on

This text has been automatically generated. It may not be 100% accurate.


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