Analysts expect something better in this earnings season for U. S. banks but still they think that many traders are moving ahead with a cautious stance following the run that the financials had in 2012.
According to their reports, JPMorgan Chase & Co and Wells Fargo are the two names that are being expected to stand as the largest in the banking sector by market value. Though the earnings will be reported on Friday morning, the stock levels of both are up this year and that too sharply, which experts believe will help in taking the financials to a gain of 24 percent in 2012.
The reports have also shown an increase of 7 percent for the Financial Select Sector SPDR fund that tracks the financial stocks, in the S&P 500 for the third quarter along with mentioning about its 24 percent gain too that it earned in the 2012, which outpaced the S&P 500 index (it is presently up by 14 percent for the year).
Analysts are also expecting to see the sector enjoying approx 1 percent year-over-year growth for the quarter.
"We've turned bearish (on financials), probably more than we have ever been, and started to accumulate shorts and put positions in the last few days," said Mr. James Dailey, portfolio manager at TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.
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