Sell-the-News Action Puts a Dent in Bank Earnings

Given the recent run in financials and the comments this week from Fed Chair Janet Yellen, whose more dovish outlook was reinforced again today by weak retail sales and nonexistent inflation readings, it wasn't too surprising to see some sell-the-news action in the financials. Citigroup (C) , Wells Fargo (WFM) and JPMorgan (JPM) each delivered solid numbers ahead of estimates, but both gapped lower at the open and put pressure on the rest of the sector. (Citigroup and Wells Fargo are part of TheStreet's Action Alerts PLUS portfolio.) 

Unfortunately for the bears, that early pressure didn't spill over into the rest of the market. Instead, it seems the money that poured into banks a couple of weeks ago rotated back into other areas, particularly tech, which was the leading sector on the day. To add insult to injury, financials all put in pretty good hammers, finishing well off opening lows, and both major indices ended the day at fresh record highs. The Nasdaq wasn't too far behind, finishing less than four points off all-time highs. ...219 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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