Markets Turn Negative On Financial Stocks

As mid day approaches, the markets have turned to the negative side. Fear continues to creep out of Europe as the Euro has inched back to the negative side against the Dollar. In addition, financial regulation seems sure to pass in the coming weeks. Financial stocks are having a tough time catching any sort of bid. Goldman Sachs Group, Inc. GS is dropping sharply today. The stock is trading at $140.24 -$2.40 (-1.68%). In addition, JPMorgan Chase & Co. JPM is trading down to $39.44 -$0.40 (-1.00%) while Wells Fargo & Company WFC is at $31.15 -$0.82 (-2.56%). Bank of America Corporation BAC is the strongest of the group just slightly lower, trading at $16.30 -$0.05 (-0.31%). Ever since Healthcare reform passed months ago, financial stocks have been under pressure. The next logical stage of progression, following President Obama's Healthcare bill was financial reform. With financial reform on the table, the administration has helped push public sentiment with various investigations into Goldman Sachs, JPMorgan Chase and others. Financial reform now looks all but done. This is a negative for financial companies because of the restrictions it will put on them when making their billions of dollars in earnings per quarter. With new rules come handcuffs on how and what they can do. Profits may and most likely will suffer. The stocks have been selling on this. Once financial reform passes, look for a global financial settlement on the various civil charges. Once this is nearing completion, the financial stocks will be a great investment once again. Gareth Soloway Chief Market Strategist www.InTheMoneyStocks.com