Goldman Sachs Group Inc. (NYSE:GS) stock was up 1.38% at the bottom of the noon hour on March 9. This after a report from the Wall Street Journal revealed that chief executive officer Lloyd Blankfein could be preparing to exit as soon as the end of 2018. The bank would reportedly replace Blankfein with David Solomon or Harvey Schwartz, one of its two co-presidents.
Blankfein was heralded for his leadership as Goldman Sachs came out of the 2007-2008 financial crisis in a better position than many other top institutions. The move comes days after chief economic advisor and former Goldman Sachs president Gary Cohn announced his resignation from the Trump administration. Cohn was one of the key architects of the U.S. Tax Cuts and Jobs Act, which received almost universal praise from Wall St. executives, including Blankfein.
Goldman Sachs and other top U.S. stocks were also boosted on Friday by the release of nonfarm payrolls. The U.S. economy added 313,000 jobs in February, which beat expectations. Wage growth fell to 2.6% year over year compared to the 2.9% reading reported in January. The strong employment numbers should reinforce the U.S. Federal Reserve’s drive to hike interest rates several more times in 2018.
Goldman Sachs stock has now climbed 6% in 2018 and 8% year over year. It last announced a dividend of $0.75 per share representing a 1.1% dividend yield. Investors will be sad to see Blankfein go, as he has made a mark as one of the most accomplished executives on Wall St. during his tenure.
