Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Dow Looks Set to Close Week Lower for First Time Since June

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

In a week with very little economic data to propel trading, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) has suffered from weak momentum and investor indecision. The index is poised to record its first down week since June, with a loss of 123 points as of this writing. Though some had initially thought that the summer slump had passed, with positive economic news leading to gains earlier in the season, Mr. Market may be headed for an Indian summer slump.

Looking ahead
Most news stories regarding economic data and the overall recovery will cite at least one economist or analyst who says the second half of the year will bring better data and better stock movements. Not to burst their bubble, but the second half of the year has already begun -- and we're not getting the best news so far.

With that in mind, it's important for investors to look at their portfolios with a long-term view. Though this is a temporary market environment, with specific conditions due to the economic recovery, it will end -- the issue is timing. So look at your investments with a clear focus on their management of the current conditions: Are they profitable now? Can the company withstand the current challenges for a longer time period? What are the forces working against the company's profitability? Though this exercise is focused on the near-term environment, it will help you determine how your investments will act if current conditions remain for an extended period of time, and allow you to breathe easier if the second half of the year doesn't come up to snuff.

Banks facing new requirements 
(NYSE: JPM  ) is facing a Securities and Exchange Commission probe into its London Whale trading debacle and may be required to do something that banks have long been spared from -- admit wrongdoing. Previously, banks were not required to admit (or deny) wrongdoing as part of the resolution for such probes, but new SEC Chairman Mary Jo White is changing all that with the related parties either choosing to admit their misconduct or heading to trial.

With Bank of America (NYSE: BAC  ) also on the SEC's list of investigations, it may not be long before that bank also has to admit wrongdoing. B of A is currently facing suits from the SEC and the Department of Justice for selling $850 million in mortgage-backed securities that it allegedly misrepresented as less risky than they truly were.

Both Bank of America and JPMorgan are facing heavy legal dockets in the coming months due to the SEC and DOJ probes, but the other half of the big four are currently facing less scrutiny. While Wells Fargo (NYSE: WFC  ) does have a number of suits pending in relation to is securities lending program, it got good news this week when one jury found the bank not guilty of misrepresenting the risk of said program to investors. With the news of the B of A and JPMorgan probes coming from their second-quarter 10-Qs, the fact that Citigroup (NYSE: C  ) filed its report a week ago and hasn't called any attention to new probes makes it look like the bank is in the clear -- for now.

The latest spate of legal troubles is just another reason that many investors are terrified about investing in big banking stocks after the crash, but the sector has one notable standout. In a sea of mismanaged and dangerous peers, it rises above the rest as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.

Read/Post Comments (0) | Recommend This Article (1)

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.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2588388, ~/Articles/ArticleHandler.aspx, 5/31/2016 12:14:57 AM

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...

Today's Market

updated 3 days ago Sponsored by:
DOW 17,873.22 44.93 0.25%
S&P 500 2,099.06 8.96 0.43%
NASD 4,933.51 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/27/2016 4:43 PM
^DJI $17873.22 Up +44.93 +0.25%
BAC $14.88 Up +0.18 +1.22%
Bank of America CAPS Rating: ****
C $46.58 Up +0.47 +1.02%
Citigroup Inc CAPS Rating: ***
JPM $65.43 Up +0.40 +0.62%
JPMorgan Chase & C… CAPS Rating: ****
WFC $50.85 Up +0.30 +0.59%
Wells Fargo CAPS Rating: *****