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



JPMorgan Chase & Co. Leads the Dow After Asset Sale

U.S. stock markets are up slightly late in trading after the Federal Reserve of Philadelphia released a manufacturing index that indicated relatively strong expansion. The reading of nine was up from -6.3 in February and well above the 3.5 that economists expected. Any reading above zero indicates expansion.  

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) has responded with a 0.5% gain today, looking past continuing sanctions on Russia that could elevate conflict in the region.

JPMorgan leads the Dow
Giant bank JPMorgan Chase & Co. (NYSE: JPM  ) is one of the biggest winners on the Dow today, climbing 3%. The company announced the $3.5 billion sale of its physical commodities unit, which is being purchased by Swiss company Mercuria.

JPMorgan Chase's bank in Time Square. Image owned by The Motley Fool.

This comes just after JPMorgan was named the top Wall Street bank in energy and metals trading, according to U.K. analytics firm Coalition. It topped Goldman Sachs (NYSE: GS  ) , which was No. 1 last year and may regain the spot now that JPMorgan is exiting physical commodities.  

The deal doesn't get JPMorgan out of commodities; it actually cuts the bank's commodities business by just one-third, according to Forbes. But it could reduce concerns among regulators that JPMorgan's massive deposit base is being used to manipulate the commodities market.

Last year, the Senate debated whether or not JPMorgan and Goldman Sachs held too much clout in commodities because of their asset bases, and considering the scrutiny JPMorgan has been under and the small size of its physical commodities business, it may not have been worth the headache.

The other thing to watch today is the Fed's release of stress tests on banks, coming at 4 p.m. EDT. These are closely watched by investors, and if JPMorgan and Goldman Sachs pass, they could increase their dividends or buybacks. Failure could mean a reduction in both.

I wouldn't expect any failures from these two massive banks, but keep an eye on their plans to return capital over the next few weeks, because that could get these stocks moving higher again.

Keep an eye on this disruptive bank
Do you hate your bank? If you're like most Americans, chances are good that you do. While that's not great news for consumers, it certainly creates opportunity for savvy investors. That's because there's a brand-new company that's revolutionizing banking and is poised to kill the hated traditional brick-and-mortar banking model. And amazingly, despite its rapid growth, this company is still flying under the radar of Wall Street. For the name and details on this company, click here to access our new special free report.

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.

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: 2883809, ~/Articles/ArticleHandler.aspx, 9/3/2015 12:34:39 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...

Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

Today's Market

updated 3 hours ago Sponsored by:
DOW 16,351.38 293.03 1.82%
S&P 500 1,948.86 35.01 1.83%
NASD 4,749.98 113.87 2.46%

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

9/2/2015 4:36 PM
^DJI $16351.38 Up +293.03 +1.82%
GS $184.51 Up +2.39 +1.31%
Goldman Sachs CAPS Rating: ***
JPM $62.57 Up +1.12 +1.82%
JPMorgan Chase & C… CAPS Rating: ****