Bank Stocks Lead Again
The leading sector in the stock market is now the banking stocks. Since late November 2010, this industry group has surged to the upside. Ironically, this sector began to surge higher once an arrest warrant was issued by Interpol on December 1st, 2010. Since that time Bank of America Corp.(NYSE:BAC) has surged higher by 40.0 percent. That is quite a dramatic move higher in six weeks time.
This morning J.P. Morgan Chase & Co.(NYSE:JPM) reported earning that were slightly better that expected. The stock is trading higher by 0.61 cents to $45.06. This is a new nine month high for the stock today. The stock has risen higher by 20.0 percent since early December 2010.
Other financial stocks that are trading higher this morning are Wells Fargo & Co.(NYSE:WFC), Goldman Sachs Group Inc.(NYSE:GS), and Morgan Stanley(NYSE:MS), and Citigroup Inc.(NYSE:C). The regional banks are also climbing higher this morning. That can easily be seen by looking at the SPDR KBW Regional Banking ETF(NYSE:KRE) which is trading higher by 0.22 cents to $26.37.
Please remember that the large major banks can borrow money from the Federal Reserve Bank at zero to a quarter percent. Therefore, as long as interest rates do not surge too high these stocks should benefit for a steepening yield curve.