Why JPMorgan Is Still Up Today

After opening slightly down this morning, JPMorgan Chase (NYSE: JPM  ) is up 0.36% after about an hour and a half of trading. The last few days have seen steady gains by each of the Big Four banks and has been widely credited to the so-called "Tepper rally." But what exactly is that? And can we expect to see more of it today?

Tale of the tickers
First, here's a quick look at what JPMorgan's peers and the markets are up to so far:

  • Bank of America is up 0.24%.
  • After opening the day down, Citigroup (NYSE: C  ) has been on a bit of a roller-caster ride and is now trading 0.58% down from yesterday's close.
  • Wells Fargo, usually the cautious laggard when it comes to moves in either direction, is up a solid 0.52%.

The markets are mixed at the moment:

  • The broader S&P 500 is down 0.05%.
  • The narrower Dow Jones Industrial Average has been up and down all morning, and is now up 0.01.%
  • And the Nasdaq Composite is up 0.24%.

When Tepper speaks, people listen
The word "Tepper" in "Tepper rally" refers to David Tepper, the president and founder of Appaloosa Management: the enormously successful hedge-fund that returned 30% after-fees to its investors in 2012. With returns like that, when Tepper speaks, investors listen. 

And speak he did, two days ago on CNBC's "Squawk Box." In general, he talked about how he was still bullish on stocks, but he called out several in particular: Citi and JPMorgan among them. Tepper noted that Citi was his biggest holding, and that he held a small position in JPMorgan. 

If the Tepper rally really was in effect over the last few days, it may be petering out for the bank Tepper seems most bullish on: Citi. It's the only bank of the Big Four that's trading down today. And if it's petering out for Citi, can the other three be far behind? They're all up, but not by very much. And there's no breaking bad news to explain Citi's drop otherwise.

Nor is there any breaking good news to explain why JPMorgan is otherwise up. Which brings us to a central point about investing Foolishly: Tune out the market noise and tune into the fundamentals of the companies you're invested in.

Then check on your stock prices once a month or once a quarter, and let the market do its job and bring you the long-term gains you're really after. Get rich slowly: It's what investing Foolishly is all about. 

Looking for in-depth analysis on JPMorgan?
Check out a new Motley Fool report on the superbank, written by Ilan Moscovitz -- The Motley Fool's senior banking analyst and JPMorgan Chase specialist. You'll learn where the key opportunities for the superbank lie, where its core growth will come from, and the potential business risks. You'll also get an analysis of its leadership team. And with quarterly updates included, this might quite literally be the last JPMorgan investment research you'll ever need. For immediate access click here now.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2435776, ~/Articles/ArticleHandler.aspx, 4/18/2014 8:28:06 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement