Financial Stocks Help Float the Dow Higher

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is on a roll this morning, up nearly 70 points by late morning, following some mixed economic news.

The Institute for Supply Management released its take on the economy today, showing that October has continued the uptick in economic activity noted over the previous four months. Overall, the ISM notes that the economy has been growing steadily for 53 months in a row. Of 18 sectors, 14 reported decent growth, though remarks were mixed on whether the early October government shutdown affected the business climate.

Markit announced its report on U.S. manufacturing earlier this morning, noting that the Purchasing Managers' Index showed a slower rate of growth in October compared to the year prior. One bright spot appeared to be employment in the manufacturing sector, which shifted upward a bit, perhaps indicating that October's slowdown is seen as temporary.

Financials flying high
Financial stocks are more than holding their own so far today, and even the big banks are looking good, despite all their ongoing legal problems. For JPMorgan Chase (NYSE: JPM  ) , today is a good day, and the stock has climbed more than 1% this morning. Goldman Sachs (NYSE: GS  ) is also in the green, up by more than 0.3%.

For both banks, the overwhelming interest in the initial public offering of Twitter stock may be giving them a boost. Bloomberg reports that initial whispers have indicated that the social media titan's shares will be snapped up quickly, particularly at the stated $17 to $20 per-share offering price. While both banks are involved with the underwriting of the IPO, Goldman Sachs will take away the biggest slice of the payday pie, at more than 38%, compared with JPMorgan Chase's 15%.

Alas, not all the news regarding JPMorgan is good -- although some new scrutiny of its global hiring practices doesn't seem to be bothering investors at the moment.

The bank said in a quarterly filing with the Securities and Exchange Commission that the Department of Justice has joined the SEC in a probe of its hiring and currency trading activities in Hong Kong, as regulators press on with their investigation of foreign exchange rate manipulation by large U.S. banks. Also revealed is the filing that claims against the bank for low-quality mortgage bonds were in the neighborhood of $117 billion, something that investors might find distressing once the information is digested fully.

Stocks to hang on to for the long term
As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 


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

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.

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: 2709566, ~/Articles/ArticleHandler.aspx, 9/24/2014 12:36:02 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...


Advertisement