GO
Loading...

Big Three Financials Deliver

Friday, 18 Jul 2008 | 4:08 PM ET

I know, it wasn't exciting, but exciting wasn't what most traders were looking for. After a wild week, a quiet stable day was fine. There was no concerted attempt to sell off financials, and that is why it was a successful day for bulls.

The financial rally this week is a tough call. The good news is that the big three--Wells Fargo

, JP Morgan , and Citi --all delivered. There were no capital raises, no dividend cuts. Will that continue? Many regionals next week may challenge that assumption. Wachovia is the stock to watch, with earnings on Tuesday. There is new leadership there, but also problems: heavy exposure to housing, and there have been concerns about the possibility of a capital raise and/or a dividend cut.

The early bet is that we will be seeing a bifurcation, with companies with greater leverage undperforming higher quality names.

At the close, the CFTC reports that the net spec long position in the S&P 500 rose to the highest level since Dec '06.


Questions? Comments? tradertalk@cnbc.com

  Price   Change %Change
C
---
JPM MLP ETN
---
WFC
---

Featured

  • A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

Wall Street