Financial Slaughter House
The banks are taking a big hit again on more comments and bearish sentiment on Wall Street. Bank of America Corporation (NYSE:BAC) has come crashing through the $10.00 level and is now trading at $9.62, -0.38 (-3.75%). More and more talk about the banks has been heard in regards to their exposure to Europe. Even solid earnings from JPMorgan Chase & Co. (NYSE:JPM) and Citigroup Inc. (NYSE:C) could not do anything for the slaughtered bank stocks.
As the U.S. stock markets continue to trade at their lows, there is little down in the minds of traders that the financial sector is going to see more hardships. The key will be figuring out when it is baked in and at what price to give them a shot. The stress test in Europe did little to reassure the global markets as Europe did not even include a default in Greece as a factor. This makes the stress test in Europe look more a pathetic game of pull the cloth over the eyes.
Ultimately, the markets need a big flush and the U.S government to get the debt ceiling raised. Should that happen, a small back stop will be in the markets for the near term, before the next shoe drops.