Financials Get Hit Based On JP Morgan May 2012 Headline Risk, Europe and China:
The JP Morgan Effect May 2012 Keeps Investors Away From Financials.
The U.S. stock market fell sharply today as investors kept away from key sectors like the financials in anticipation equities prices could fall further. Investors may be waiting for another shoe to drop since JP Morgan announced Thursday after the close of trading that the company had lost $2 billion in 6 weeks.
Headlines from Europe didn’t help traders have buying gumption today as Greece draws closer to ultimately leaving the euro as a standard currency. China’s economic data has been weak recently and PIMCO today estimated the China could grow at its lowest rate in 13 years with growth possibly occurring in the mid 7 percent range.
Bullish investors haven’t had much good news in the last few trading days and the XLF finance ETF lost over 0.02 percent today led by weakness from Wells Fargo, JP Morgan and Citigroup. Some investors are on the sidelines waiting for the Facebook IPO this Friday but the overall market trends based on commodities, technical analysis and economic fundamentals globally continue to look weak short-term without a new catalyst to change sentiment.