GO
Loading...

Why Didn’t JPMorgan Rally as Much as Other Big Banks?

On Friday the Fast pros were intrigued by the price action in JPMorgan, which traded down into negative territory then pared losses while most other big banks rallied hard.

Believing that leaders had made a big step forward in the overseas financial crisis, investors hit the buy button in a slew of financials including Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley .

But they didn’t buy JPMorgan with nearly the same gusto. For parts of the session the stock was negative.

That's unusual because the Fast Money pros believe the buying thesis was largely pegged to word that the EU had agreed to allow rescue funds to be used to stabilize the region's banks. The Street interpreted developments as a sign that European policy makers had removed systemic risk from the financial crisis.

That same catalyst should also benefit JPMorgan, too. Yet Jamie Dimon's bank traded in the red.

Jon Najarian explains there's another catalyst - and it seems to be trumping the EU developments.

He says the Street is still very focussed on a report in the New York Times which said losses from a bungled credit-derivatives trade could be as much as $9 billion, much more than earlier estimated.

However, CNBC’s Kate Kelly and Andrew Ross Sorkinsaid the loss would be somewhere between $4-$6 billion.

"It's turned into a game of who's going to be right," says Najarian. And it's a high stakes game because in public comments Jamie Dimon had said $4-$6 billion was the level that's manageable.

And that begs the question - should you buy the weakness? “If you think it’s $4-$6 – then, yes, I'd buy the weakness,” Najarian says.

Posted by CNBC's Lee Brodie

______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On June 29, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Anthony Scaramucci is long AAPL; Anthony Scaramucci is long C; Anthony Scaramucci is long GS; Anthony Scaramucci is long JPM; Anthony Scaramucci is long IBM; Anthony Scaramucci is long NKE; Anthony Scaramucci is long T; Pete Najarian is long AAPL; Pete Najarian is long BAC CALLS; Pete Najarian is long C; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long FB CALLS; Pete Najarian is long MSFT; Pete Najarian is long NOK; Pete Najarian is long NKE CALLS; Pete Najarian is long PEP; Patty Edwards is long for clients AAPL; Patty Edwards is long for clients GLD; Patty Edwards is long for clients INTC; Patty Edwards is long for clients COST; Patty Edwards is long for clients SBUX; Patty Edwards is long for clients AMZN; Patty Edwards is long for clients FB; Patty Edwards is long for clients MSFT; Patty Edwards is long for clients WFM; Patty Edwards is long for clients NKE; Patty Edwards is long for clients VZ; Patty Edwards is long for clients T; Patty Edwards is long for clients CTSH; Patty Edwards is long for clients PVH; Patty Edwards is long for clients CBI; Patty Edwards is long for clients BGS; Patty Edwards is long for clients MCD; Patty Edwards is long for clients MO; Patty Edwards is long for clients CTL; Patty Edwards is long for clients BKCC; Patty Edwards is long for clients AGNC; Patty Edwards is long MCD; Jon Najarian is long call spreads in NKE; Jon Najarian is long call spreads in TIF; Jon Najarian is long call spreads in CSCO; Jon Najarian is long call spreads in EFA; Jon Najarian is long call spreads in MMR; Jon Najarian is long call spreads in PBR; Jon Najarian is long call spreads in MNST; Jon Najarian is long call spreads in GRPN; Jon Najarian is long CIGX; Jon Najarian is long CBOE; Jon Najarian is long CME; Jon Najarian is long DDMG

For Macneil Curry
Nothing to Disclose

For Whitey Bluestein
Nothing to disclose




CNBC.com with wires.

Symbol
Price
 
Change
%Change
BAC
---
C
---
GS
---
JPM MLP ETN
---
MS
---
WFC
---

Featured

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET