As earnings season begins once again, JP Morgan’s earnings report allowed markets, and banks overall, to launch a rally boosting indexes. Once again earnings beat lowered expectations which is the game most analysts play every quarter. This allowed for the headline beat bulls love and also allowed financials (XLF) and banks (KBE) to rally.
J.P. Morgan Investors Relieved Despite Slip in Profit (WSJ)
Banks Lead Rally in Stocks (WSJ)
Despite the previous high correlations between oil (USO) and the S&P (SPY) that didn’t hold true on Wednesday as oil prices fell (on higher