Investors Not Scared of Rating Cuts as Big Banks Lead Market Rally
Five Star Equities Provides Stock Research on Goldman Sachs and Wells Fargo
(firmenpresse) - NEW YORK, NY -- (Marketwire) -- 06/26/12 -- U.S. bank stocks posted solid gains last Friday, despite Moody's Investors Service cutting the credit ratings of 15 banks globally. "It's been like a cloud over the sector," said Brian Gendreau, market strategist at Cetera Financial. "And look at who's going up: bank stocks. There are obviously some people who thought it would be much worse." Five Star Equities examines the outlook for companies in the Banking Industry and provides equity research on Goldman Sachs Group, Inc. (NYSE: GS) and Wells Fargo & Company (NYSE: WFC).
Access to the full company reports can be found at:
Of the six largest U.S. banks, only Wells Fargo maintained its credit rating. The revenues of the 5 major U.S. banks that received cuts -- JPMorgan, Bank of America, Citigroup, Goldman Sachs and Morgan Stanley -- decreased 11 percent from the year prior. The rating cuts by Moody's were the first since the financial crisis. Morgan Stanley emerged as "the clear winner" according to analysts at investment bank Keefe Bruyette & Woods. Many analysts were expecting Morgan Stanley's rating to be cut by three notches instead of the two it received.
Five Star Equities releases regular market updates on the Banking Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous stock reports and industry newsletters.
A day after the ratings-downgrade, 14 out of the 15 banks saw their shares rise. The KBW Bank Index (BKX) jumped 1.35 percent Friday. "Moody's is realizing that banks are risky, but there's nothing that they said about the industry that you couldn't have said 10 years ago, 15 years ago," said bank analyst Dick Bove of Rochdale Securities.
Bove stated that banks are the strongest than they have been in the last several years as borrowing costs have actually fallen for banks. The U.S. banking Industry has posted their best first quarter since 2007. Collectively U.S. banks posted a first quarter profit of $35.3 billion. As well the industry saw just 16 FDIC-insured banks fail in the first quarter, the lowest since the end of 2008, according to the FDIC's quarterly banking profile.
Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at:
Contact:
Five Star Equities
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 26.06.2012 - 12:20 Uhr
Sprache: Deutsch
News-ID 159941
Anzahl Zeichen: 0
contact information:
Town:
NEW YORK, NY
Kategorie:
Commercial & Investment Banking
Diese Pressemitteilung wurde bisher 240 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Investors Not Scared of Rating Cuts as Big Banks Lead Market Rally"
steht unter der journalistisch-redaktionellen Verantwortung von
Five Star Equities (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
