Financial Stocks Take Leadership Early
This morning, the major financial stocks are trading higher leading the major stock indexes higher. Before the opening bell, J.P. Morgan Chase & Co.(NYSE:JPM) reported earnings that were better than expected. The earnings news seems to be well received by traders and investors as the stock is trading higher by $1.34 to $40.95 a share. When the financial stocks rally it is prudent to expect the major stock indexes to hold up. After all, it was the financial stocks that have been leading the major stock indexes lower over the past three months. JPM stock is considered the best stock in the financial sector and a market leader. Therefore, where JPM goes so goes the sector.
Other leading financial stocks that are trading higher in sympathy to JPM stock include Bank of America(NYSE:BAC), Wells Fargo & Co.(NYSE:WFC), Citigroup Inc.(NYSE:C), and Goldman Sachs Group Inc.(NYSE:GS). Should JPM stock happen to decline or fade later in the session, traders should watch for a decline in the entire financial sector which is still very weak on the daily charts.