Financials Lead Markets Higher, Try to Erase Abysmal FY11 Performances (C) (BAC) (GS)
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Financial stocks are leading the market rally Tuesday, the first trading day of 2012 in the U.S. markets.
The Financial Select Sector SPDR (NYSE: XLF) itself is up 2.5 percent, outpacing the 1.5 percent gain in the Dow Jones, S&P 500, and Nasdaq. Atop of bank stocks making a move are Citi (NYSE: C), Morgan Stanley (NYSE: MS), and Goldman Sachs (NYSE: GS), which are up 7.2 percent, 6.4 percent, and 5.6 percent on the session, respectively.
Through 2011, the KBW Bank Index fell 24.6 percent to $39.38, while the Dow Jones finished 5.5 percent better, and even the S&P 500 ended basically flat (down 4 cents). That index doesn't take into consideration the severity with which some financials plunged in 2011: Bank of America (NYSE: BAC) fell 59 percent, JPMorgan (NYSE: JPM) slipped 20 percent, American Int'l Group (NYSE: AIG) fell 52 percent, Citi dipped 43 percent, and Goldman Sachs saw a 46 percent drop.
Banks were plagued by issues in Europe for most of 2011, as investors mulled over the exposure many had with investments across the pond.
Today, manufacturing seems to be the name of the game, with China's Purchasing Managers' Index (PMI) moving from 49.0 in November to 50.3 in December, and India moving from 51.0 in November to 54.2 in December.
Any number above 50 represents economic expansion.
Data in the U.S Tuesday had the ISM Index moving from 52.7 in November, to a more comfortable 53.9, and construction spending increasing 1.2 percent in December, which beat estimates.
Investors are also gearing up as banks are appearing to be less risky. Data from Markit has the cost to insure credit-default swaps for 25 banks and insurers -- the iTraxx Financial Index -- falling 12.5 basis points to 264.5, its lowest level since December 5th.
Later on in the week, traders and investors will be focusing on nonfarm payrolls and the unemployment rate. Headline numbers for both are expected to be 150,000 and 8.7 percent, mixed to numbers for November.
The Financial Select Sector SPDR (NYSE: XLF) itself is up 2.5 percent, outpacing the 1.5 percent gain in the Dow Jones, S&P 500, and Nasdaq. Atop of bank stocks making a move are Citi (NYSE: C), Morgan Stanley (NYSE: MS), and Goldman Sachs (NYSE: GS), which are up 7.2 percent, 6.4 percent, and 5.6 percent on the session, respectively.
Through 2011, the KBW Bank Index fell 24.6 percent to $39.38, while the Dow Jones finished 5.5 percent better, and even the S&P 500 ended basically flat (down 4 cents). That index doesn't take into consideration the severity with which some financials plunged in 2011: Bank of America (NYSE: BAC) fell 59 percent, JPMorgan (NYSE: JPM) slipped 20 percent, American Int'l Group (NYSE: AIG) fell 52 percent, Citi dipped 43 percent, and Goldman Sachs saw a 46 percent drop.
Banks were plagued by issues in Europe for most of 2011, as investors mulled over the exposure many had with investments across the pond.
Today, manufacturing seems to be the name of the game, with China's Purchasing Managers' Index (PMI) moving from 49.0 in November to 50.3 in December, and India moving from 51.0 in November to 54.2 in December.
Any number above 50 represents economic expansion.
Data in the U.S Tuesday had the ISM Index moving from 52.7 in November, to a more comfortable 53.9, and construction spending increasing 1.2 percent in December, which beat estimates.
Investors are also gearing up as banks are appearing to be less risky. Data from Markit has the cost to insure credit-default swaps for 25 banks and insurers -- the iTraxx Financial Index -- falling 12.5 basis points to 264.5, its lowest level since December 5th.
Later on in the week, traders and investors will be focusing on nonfarm payrolls and the unemployment rate. Headline numbers for both are expected to be 150,000 and 8.7 percent, mixed to numbers for November.
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