Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways To Play: S&P Cuts Banks With Dull Knife

By

Strengthen your portfolio in good times and bad.

PrintPRINT

Cuts Like a Dull Knife

With increased risk for the entire sector, Standard & Poor's (S&P) cut its ratings on 11 financial institutions and placed a twelfth on close watch for a potential downgrade. Among the companies affected are Goldman Sachs (GS), Morgan Stanley (MS), JPMorgan Chase (JPM) and Wells Fargo (WFC). HSBC (HBC) was placed on negative watch (which suggests a downgrade could come at a later time), but its AA rating is still affirmed at this time.

But now that S&P is factoring government intervention as part of its ratings process, none of the banks are likely to get a rating lower than A+, or satisfactory credit quality. Hmmm.

An equally skeptical Professor Jeff Macke offered his thoughts on the ratings agencies earlier this year in Ratings Agencies as Dr. Kevorkian.

From the Bull Pen: Bulls can consider buying Northern Trust (NTRS) into its 20 DMA (near $45). A sell stop can be set below that level.

From the Bear Cave: The potential for a large bear market rally exists. So bears playing the downside might consider waiting until a stock like MasterCard (MA) approaches its 200 DMA ($180) for a better opportunity.


Quick Check Around the World

Asian trading closed with the Hang Seng -2.39%, Nikkei -0.91%, Sensex 0.23%, Taiwan 0.01% and Shanghai 0.14%.

Glancing towards Europe, we see the CAC -1.41%, DAX -1.32%, FTSE -2.25%

As of 8:20 a.m. EST, S&P futures are trading -1 to 891, and Nasdaq futures are -4.5 to 1221.


A Look At Commodities

Crude oil is trading -2.020 to 34.200 Gold is -18 to 835.42. Silver is -0.215 to 10.765, and copper is +0.300 to 130.45.

The dollar index is +1.528 to 80.003.

No events on the radar today. Happy Friday! Good luck!

Actionable ideas, instant analysis. Real-time from bell to bell.
Minyanville's Buzz & Banter - 14 day FREE trial

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE