With the S&P down 3/10% the XLF is flat, BAC is down a penny, C is down 3 cents and JPM is up a dime.
We've had two posts in the last week on the failure of the S&P Financial ETF (XLF) to lead the market higher.
Not only isn't it leading, it's not even following at a respectful distance.
[he was running around quoting Thomas Paine earlier today -ed]
As everybody knows, earnings season kicks off with Alcoa’s report after the bell this afternoon. And for the banks it really gets going with J.P. Morgan Chase’s report on Wednesday. Raymond James financial stock analysts “continue to pound the table on the nation’s three-largest banks, with Strong Buy ratings on Bank of America, Citigroup, and JPMorgan.” They write in a note out Monday:Previously:
On average, these banks trade at only 85% of book and about 8.0 [times estimated 2012 earnings per share]. Additionally, they have established positive credit quality trends, have above-average cyclical leverage, and will likely maintain very strong EPS momentum despite the challenging near-term environment for revenue growth....MORE