Wednesday, January 2, 2013

Bank stocks surge after fiscal cliff deal

As expected, financial stocks are off to a roaring start in the first trading day of 2013 after lawmakers in Washington reached a deal on the "fiscal cliff."

Bank of America's shares were up nearly 4 percent by 9:45 a.m., crossing $12 for the first time since May 2011. The Charlotte bank perhaps had the most at risk among its peers had a deal not been reached. Analysts with Guggenheim Securities said in November an impasse could have sent its stock price plummeting.

Citigroup was up 4 percent. Wells Fargo, BB&T and JPMorgan Chase were all up more than 2 percent. The Dow Jones Industrial Average is up about 2 percent as well.


Anonymous said...

Of course, because the only thing the deal did was ensure more money printing by the Fed, and more bond flipping by the Primary Dealers for millions in profits.

Ninja Trader Guy said...

Any supposed limitations on spending by our government are nothing more than illusions. They will print more money because they HAVE to. There are no tools left in the toolbox but that. Banks have been, and will continue to be, the primary beneficiaries of all government largesse, mainly because Wall Street owns our government. Cheering over a fiscal cliff "deal" is kind of silly, seeing as how we already fell off the cliff back in fall of 2008. Just my two cents.

Phil @ Penny Stocks