|Day Low/High||101.42 / 103.31|
|52 Wk Low/High||76.91 / 141.10|
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...
Next week the June quarter earnings season maelstrom kicks off with 115 companies, including 32 S&P 500 constituents, reporting their latest quarterly results. In recent days we've seen a number of companies up their outlook for the quarter but we'v...
The banks have the ability to determine much of what's real and what's phony, more than any other group.
The pace of the economic recovery has cooled in recent weeks. And some businesses might start making larger spending cuts if they feel the economy will be under pressure for a while.
Wells Fargo, Citigroup and JPMorgan Chase report on July 14, and they will do so at a time when a large group of people are unlikely to make rent.
Plus, a closer look at Thursday's late-day rally and at actions impacting the nation's big banks.
The Bank of Nova Scotia is a Canadian bank with a high dividend yield above 5%.
The bank has an attractive 7.6% yield, but uncertainty lurks.
* I remain bullish on banks * Wells Fargo is attractive * The back and filling I expected last Friday is now happening One of the market issues I mentioned this morning was the appearance and comments of Wells Fargo CFO John Shrewsberry at Morgan St...