Financial Action: Worries From Europe And Contagion
Someone Is Worried When CNBC Brings Out The Perma Bulls
One sector that will tell the tale of the market is the financial sector. This morning, all of the leading financial stocks are coming under early selling pressure. When the financial stocks decline it is very difficult for the major stock indexes to stage any kind of meaningful bounce. Today, the Financial Select Sector SPDR (ETF) (NYSEARCA:XLF) is trading lower by 0.09 cents to $13.41 a share.
J.P. Morgan Chase & Co (NYSE:JPM) is the most important financial stock that any trader can follow at this time. This stock has lead the major market indexes higher throughout the first three months of 2012 and now the same stock is leading the markets lower. JPM stock has come under some major scrutiny after reporting a $ 2 billion trading loss in its investment unit.
This morning, all of the leading financial stocks are catching a bid higher. This move in the financial stocks comes despite the sharp sell off in the overnight trading session in the futures market. The most important financial stock that any trader can follow is J.P. Morgan Chase & Co (NYSE:JPM). Today, JPM stock is trading higher by 0.25 cents to $42.00 a share.
The golden age for foreclosure squatters may soon be coming to an end now that the $26 billion mortgage settlement has been approved.
The settlement, agreed to by the nation's five largest mortgage lenders, is expected to speed up the foreclosure process by providing stricter guidelines for the banks to follow when repossessing homes.
In 2012, the financial stocks have lead the stock markets higher. Most of the leading stocks in the financial sector still remain in a daily uptrend. This is very evident when traders are viewing the Financial Select Sector SPDR (ETF) (NYSEARCA:XLF). The XLF is clearly trading above the 50, and 200 daily chart moving averages at this time.
This afternoon, all of the large major bank stocks are holding up despite the sharp decline in the major stock indexes. Leading bank stocks such as JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), Bank of America Corp (NYSE:BAC), and Wells Fargo & Company (NYSE:WFC) are actually trading positive today by a few pennies.
Everyone in the financial media is raving over the higher interest rates in the bond market. Most talking heads on the cable news channels are talking about how the steeper yield curve is beneficial for the large bank stocks. There is a case that the large bank stocks can charge higher interest on their loans and make more money. Do banks make many loans these days.