This morning, many of the large financial stocks are declining from the highs at the start of the trading day. Leading financial giants such as Goldman Sachs Group Inc (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Co (NYSE:WFC), and Citigroup Inc (NYSE:C) have given back the bulk of their gains from the opening bell. ...
Financial Stocks Weak: FOMC Leading Indicator Alert
The markets continue to roar higher with the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) trading at $165.60, +1.10 (0.67%). This is the second solid up day in a row, both coming prior the FOMC Policy Statement tomorrow. While the markets are charging higher into this major event, financial stocks have stalled and are flat to negative. Goldman Sachs Group Inc (NYSE:GS) is trading at $163.65, -0.46 (-0.28%) while JPMorgan Chase & Co. (NYSE:JPM) is trading at $53.89, +0.04 (0.07%). ..
The Federal Reserve Chairman Ben Bernanke is beginning to testifying in front of the Joint Economic Committee. In his opening remarks, the head of the central bank has signaled that he shall continue to keep the current quantitative easing program in place. Traders and investors can easily see the decline in the U.S. Dollar Index after his comments were released. Chairman Bernanke warned that reducing the Federal Reserve's efforts to keep borrowing rates low would carry a substantial risk of slowing or ending the economic recovery.
This morning, the major stock indexes are all trading sharply higher to start of the trading day. On the surface, everything looks wonderful in the stock market. The highly followed Dow Jones Industrial Average is trading higher today by 86.00 points in the first thirty minutes of the session. Many traders and investors seem to be betting on another inflationary push by Ben Bernanke, who will be announcing his latest policy statement tomorrow.