Here Are Key Takeaways From Wall Street’s Third-Quarter Earnings

  • Fixed-income trading proved largest problem for U.S. banks
  • Record-high stock market boosted investment banking gains

Goldman Beats Investment Banking Revenue Estimates

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As earnings season for the biggest banks drew to a close, Morgan Stanley and Goldman Sachs Group Inc. joined other major U.S. lenders in showing the advantages and drawbacks of calm markets.

Like JPMorgan Chase & Co. and Citigroup Inc., the firms that reported Tuesday showed a decline in fixed-income trading revenue. Low volatility has been problematic for Wall Street, especially compared with what was an active trading environment in the third quarter of 2016 on the heels of Brexit and in anticipation of the U.S. presidential election.