Bank stocks drag averages lower

     Poor earnings results from JP Morgan  are dragging the entire market lower today and especially the financial sector.  JP Morgan's net income dropped 4 pct over the July-September period and investment banking revenues declined 31 pct because of increased volatility in the financial markets over the summer.  JP Morgan's results do not bode well for the rest of the financial sector.

     JP Morgan stock is down almost 6% as of 10:53 AM PST and down about 25% YTD.  Bank of America stock is down almost 5% to 6.23.  The broader market's were down as well with the DOW down as much as 150 points early in the session but has recovered somewhat to be down only 50 points at the time of this writing.  The SNP 500 was down about .5% but the NASDAQ was green because AAPL was higher by about 1%.

     After the bell we get Google earnings.



Market Recap
     Well, Google posted some nice earnings surprise!!  Google's shares are up almost 6% in after hours trading after posting better than expected earnings result.  Google earned 2.7 billion dollars from July-September surpassing last year where they made only 2.2 billion dollars.  That breaks out to a 8.33/share profit.   Google is taking over the advertising world.

     In other news Fitch downgraded UBS and put Bank of America on watch for a credit ratings downgrade.  This has put a damper on the enthusiasm after Google's earnings.  After being up earlier, futures have traded down about 30 points.

     Today's action in the market's was quite constructive in my opinion. We should have had a big down day after JP Morgan's poor earnings report but we battled back all day long to finish 100 points higher off the lows of the day.  Certain high beta stocks like AAPL also did really well today which makes me enthusiastic about the market right now.  Tech stocks were outperformers today with the NASDAQ rising .6% while the SNP and DOW were down.

     I was just about ready to call the end of the rally yesterday, but now I believe we are witnessing the start of the traditional end of year stock rally.  It is time to buy stocks right now and I am going to start buying if we get a pullback to the 1170 level.  If you are long already, it is time to press your bets.  I am looking at AAPL and XLE and ANR for buying opportunity's.  I have missed this whole rally but haven't really been kicking myself, there is still time to buy to catch the stock rise.   

    

Disclaimer: Nothing in this blog should be construed as a recommendation to buy or sell any securities! Please do your own due dilligence before buying any stocks or bonds!