Earlier this week, ChartLabPro.com got a buy signal on two widely held financial stocks: JPMorgan
(JPM) and Bank of America
(BAC). Wells Fargo
(WFC) is the only Money Center bank that we rate a Strong Buy (5). We have been neutral on this sector and have felt that there have been better places to allocate capital. We believe these names have seen strength recently in part because of the 10-year note. Yields on the 10-year note have increased 40 bps, which will allow for NIM (Net Interest Margin) expansion. However, investors that are looking for exposure to this sector should look at less interest-rate-sensitive names like Travelers Group
(TRV) and ALL State
As you can see from this 10-year note chart, prices have declined, sending yields higher.
Bank of America and JPMorgan have made it into ChartLabPro.com’s list of most rapidly improving names.
Click to enlarge
Wells Fargo: Strong Buy (5)
Click to enlarge
For more from ChartLabPro.com, click here.
No positions in stocks mentioned.
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