Bank Of America, Morgan Stanley, Goldman Sachs Group Inc, JPMorgan Chase & Co Estimates Cut (MS, GS, JPM, SCHW)

Citigroup Inc. analysts reduced their fourth-quarter profit estimates for Bank of America (NYSE: BAC), Morgan Stanley (NYSE: MS), Goldman Sachs Group Inc (NYSE: GS) and JPMorgan Chase & Co (NYSE: JPM), citing a “substantial decline” in trading.

According to the analysts the trading volumes in the fixed-income, commodities and currencies trading in the fourth quarter declined substantially. Bank of America Corp’s 2010 EPS view was cut to $0.50 from $0.95; and was assigned a price target of $23; and the buy rating was maintained. Morgan Stanley’s Q4 EPS view was cut by $0.30 to $0.36 and 2009 loss per share view was widened to $0.75 from $0.40 and 2010 EPS was cut to $3.10 from $3.60 and was rated a hold.

The analysts cut Goldman Sachs Q4 EPS by $0.25 to $5.25 and rated it a buy with a price target of $240. For JPMorgan Chase & Co. Q4 EPS was cut by $0.15 to $0.55; 2009 EPS was cut to $2.05 from $2.25 and was rated a hold. Charles Schwab (NASDAQ: SCHW) has cut their commission for online trades. Retail brokerage Charles Schwab Corp. said it is initiating a new $8.95 flat fee for online trading. The new commission rate kicks in Jan. 19 and includes online stock trades regardless of investor portfolio size, frequency of trade or size of trade. As a result Charles Schwab’s price target was cut to $22 from $23; and was rated overweight at JPMorgan.

JPMorgan however raised American Express (NYSE: AXP) price target to $45 from $40; and assigned a neutral rating to American Express. Waste Management Inc (NYSE: WM) recently acquired recycling units. Based on these recent acquisitions Waste Management price target was raised to $42.5 from $35.5; and was rated buy by SocGen.