JP Morgan Chase will be front and center as the first bank to report numbers for the third quarter. But ahead of tomorrow's report financials stocks are taking a breather. Financials have had a strong run since the March 9th lows, with the KBW banking index advancing more than 150% since. The sector led the equity market lower today and a big part of that was the result of Meredith Whitney's downgrade on Goldman Sachs .
She reduced the stock's rating to neutral from buy, saying that its rapid rise since Q2 limits the upside potential. Whitney also added that bank stocks are "at least fairly valued" and that she is now "far less bullish" on banks than in the last quarter.