|Day Low/High||132.20 / 134.40|
|52 Wk Low/High||76.91 / 142.75|
Plus, an early look at third-quarter earnings expectations and an admonition to heed the words of Arthur Cashin.
Monday's market action was in no way similar to that recent disparity between the 'haves' and 'have nots.'
When the banking system is not healthy at its core, neither is the stock market regardless of its current price level.
* Offering more and on the short side * Added to at $23.70 * Bidding for more and * Bidding for more puts * Bidding for more (there was a brokerage downgrade yesterday) __________ Long WFC (large), SPY puts, SDS (large), SJM (large), BAC (large), J...
Right now, the financials seem to feel a little bit like owning a boat.
Don't confuse what's happening on the S&P with the nation's economy.
* Buffett clearly remains cautious about the overall markets * Neither the purchase of a gold stock or some reductions in Berkshire's bank holdings seem meaningful * Here is why... This weekend Berkshire Hathaway announced the changes in its portfo...
Markets are possibly fine until either growth or inflation force the Fed to change guidance on interest rates.
Online brokers like Robinhood are not making trading so easy because they love your account balance, but because they depend on it for profitability.
The market's performance in the three months leading up to a presidential election has displayed an uncanny ability to forecast which party will win the White House.
But that's exactly where we are right now, in this third day of the rotation, so here's your path to safety.
Here's a play in the Financial Select Sector SPDR Fund as its approaches $25.
Isaac Newton's first lesson: An object in motion stays in motion with the same speed and in the same direction unless acted upon by an unbalanced force.
* Between Monday and Wednesday Berkshire Hathaway lifted its Bank of America stake by 34 million shares (to 982 million shares) * BAC is my second favorite bank stock "The reports of my death are greatly exaggerated." - Mark Twain Following a rumor ...
Overall, the banks failed you again. But the future for two of them is much brighter than the past.
For housing, lower rates have the biggest multiplier impact of any industry in the country.
* BAC is my second favorite bank stock BAC reported second quarter profits of $0.37/share, well above consensus of $0.29. The EPS upside was due to a lower than expected loan loss provision ($3.6 billion) and a reduced tax rate - not optimal, from...
All we have to do is take our cue from companies that boosted their forecasts but their stocks did nothing.
The bank was turning in disappointing performances before Covid-19 hit, and the impact of the virus may only make things tougher.
* Look to the ground (as bank managements are), not to the sky * Most investors should consider taking a "time out" and maintain above average cash reserves "Who ya gonna believe, me or your lying eyes?" - Groucho Marx, Duck Soup While the focus ...
As money rotates out of growth, it indicates concern about valuation and that is not a bullish development.
The fact that Goldman can make this much money in this environment is extraordinary. It's too cheap.
In late June I last updated Citigroup , in Citigroup In A Post Covid World. Then I wrote: ...Since then, the world has changed - and so have Citigroup and other banks' share prices. 2020 for Citigroup, as with other large money center banks, will...
This is how you can tell which camp is winning and which is losing in this time of Covid-contradiction.
Citigroup's results, much like that of JPMorgan , shows a nice beat. Wells Fargo , not surprisingly, disappoints. I will have more on both - but I have to digest and go thru a series of conference calls.
However, the longer-term picture for the bank giant's shares is clouded by questions about volume and buyers' commitment to the stock.
* Bank stocks, viewed as intermediate term investments, are now uncommonly cheap * My June 5 expectation for "backing and filling" in the group has been realized * This week's EPS reports could mark the industry's nadir in operating fundamentals * G...