Bears Stearns Sees a Bottom in Financial Stocks

This AM, Bears Stearns upgraded financial stocks from Underweight to Market Weight, saying current market prices already reflect write-downs and lower earnings.

The firm said increasing clarity about the size of the losses and infusion of capital from foreign sources are both positives. The firm said lower earning expectations now reflect realistic outcomes.

Financial stocks were the worst performer in the S&P 500 last year, losing 21%. The group is down another 8% this year.

Financial stocks are mostly higher this morning, following earnings reports from heavy-weights JPMorgan Chase (NYSE: JPM) +3.6% and Wells Fargo (NYSE: WFC) +2.6%.

You May Also Be Interested In

• Nomura/Instinet Upgrades Malayan Banking Bhd (MAY:MK) to Buy
• CIBC Upgrades Enbridge Inc. (ENB:CN) (ENB) to Outperformer
• Argus Upgrades Moderna (MRNA) to Buy