Solomon Faces Earnings Test as Goldman Stock Drops

Goldman Sachs' stock price declined by $40.94 to close at $988.24 on Monday, down 4% from Friday's closing price of $1,029.18.

The decline comes ahead of David Solomon's appearance at the Barclays Global Financial Services Conference on Wednesday, where he is expected to address concerns about Goldman's second-quarter earnings and whether they represent a new base or a cyclical peak.

The firm's second-quarter results showed net revenue of $20.34 billion, with global banking and markets revenue up 53% from the previous year.

Solomon will face questions about the conversion of Goldman's fee backlog and whether the trading environment is likely to pull return on equity sharply lower.