Stocks TradingCharts.com

stocks prices, charts & quotes

Free Stock Prices, Charts & Stock Price Quotes

Search
Symbol Search Browse Symbols My Charts Menu
QUICK QUOTE
QUICK CHART
F.A.Questions Suggestion Box Advertising Info Commodity Charts Forex Markets

Stocks & Financial News

Breaking financial news 24/7 courtesy of TradingCharts.com Inc. / TFC Commodity Charts

What to Do After Financial Stocks Fell Last Week

May 20, 2020 (Baystreet.ca via COMTEX) --
Last week, the Federal Reserve's sour outlook on the U.S. economy sent financial stocks down sharply. JP Morgan (NYSE:JPM) fell 7%, Bank of America (NYSE:BAC) was down 9%, Citi (NYSE:C) fell 9% and Wells Fargo fell 8% at that time.

Why did investors dump bank stocks?

Banks are the financial engine, so if the country's restart fails to prevent a deep recession, profits will suffer. Worse, still, is the risk of customers and businesses filing for bankruptcy. Fortunately, the government sent stimulus checks to people and the Fed cut interest rates to 0%.

The risk of banks increasing provisions is moderate but not high. Banks will work with their customers to work out a repayment plan.

With the economy previously on a mandatory lock-down, the measured re-opening will bring jobs back. So long as the US resumes business without an increase in COVID-19 infections, the economic rebound will follow, too.

Bank stocks may fall to new lows in the weeks ahead. Investors should remember that even though economic activity in Q2 will be at its worst, it will improve from there. After the current quarter, credit card delinquency and loan write-offs should ease.

Copyright © 2020. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.