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: Ratings Cut Puts JPMorgan in Bad Moody's


Strengthen your portfolio in good times and bad.


Moody's Melancholy and Infinite Sadness

Moody's Investor Services may cut the credit ratings of the nation's 3 largest banks. According to Bloomberg, the ratings agency outlook for JPMorgan Chase (JPM), the largest of the 3, went from from stable to negative. The agency also said it will review the long-term debt ratings of Wells Fargo (WFC) and Bank of America (BAC) due to concerns that higher credit costs could hurt capital ratios.

Moody's did issue a positive statement on JPMorgan's credit card portfolio, however, saying the bank could have fewer losses than its peers. It also cited positive Tier 1 and tangible equity ratios, both measures of financial strength.

From the Bull Pen: Bad banks. Old news. Bulls can turn their attention to copper. Look at Freeport McMoRan (FCX) breaking above $30 resistance on the daily chart. One can set a sell stop 2 points from entry.

From the Bear Cave: The real downgrade is with Moody's. As Professor Bill Feingold mentioned recently on the Buzz, "[It's] hardly cheap for a declining business facing more regulation, one whose entire business model is in doubt." On the long-term technical picture, it's got room all the way to $10. One can set a buy stop around $18.

Quick Check Around the World

Asian trading closed with the Hang Seng -0.97%, Nikkei 1.95%, India -2.94%, Taiwan 2.11% and Shanghai 1.04%.

Glancing towards Europe, we see the CAC -2.00%, DAX -2.54%, FTSE -2.25%

As of 8:00 AM EST, S&P Futures are trading -12 to 696, and Nasdaq futures are -11 to 1089.

A Look At Commodities

Crude oil is trading -1.24 to 44.14. Gold is +10.9 to 917.60. Silver is +0.21 to 13.125, and copper -1.70 to 166.85.

The dollar index is +0.550 to 89.2500.

On the Radar


08:30 ICSC Chain Store Sales YoY
08:30 Nonfarm Productivity 1.6%
08:30 Unit Labor Costs 3.4%
08:30 Initial Jobless Claims
08:30 Continuing Claims
08:30 Factory Orders 2.1%

Click here for the full trading radar.

Thirsty Thursday! Meet us at Stag's Head after work. 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.

Featured Videos