Thursday, July 17, 2008

JPM .54 versus .50 estimates

And the stock trades up 2 in early trading.

PNC comes out with earnings of $1.54, versus estimates of $1.16.

A few days ago, the high yields on the banks were causing panic, as people wrongly assumed that these dividends would be cut, and "something" must be wrong.

Something was wrong-It was just that these stocks were being gang tackled by the shorts.

Now the yields will provide enticement for buyers as the expansion of the net interest margin more than offsets loan losses.

SunTrust (STI 31.83) who said they didn't need to raise capital, and weren't going to cut their dividend, fits in that category. They also have a big asset in Coca Cola.

Yesterday's punitive rally against the shorts now gets punishing.

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