S&P 500
7,588.60
+0.51%
Dow Jones
52,758.90
+0.47%
Nasdaq 100
29,885.70
+0.46%
Russell 2000
2,982.51
-0.27%
FTSE 100
10,543.60
+0.61%
Nikkei 225
69,317.20
+0.42%

Fitch Turns European Woes Against U.S. Banks… Warning of a Warning (GS, MS, C, BAC, JPM)

Photo of Jon C. Ogg
By Jon C. Ogg Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Fitch is warning that U.S. banks could be adversely affected unless the Eurozone debt crisis “is resolved in a timely and orderly manner.”  The mention is a warning that the credit outlook (which is currently stable) of the U.S. banking sector could change.  The report noted that “risks of a negative shock are rising and ould alter this outlook.”

The report from Fitch is something we would call “A Warning of a Warning” and the impact was noticed in key players.

The Goldman Sachs Group, Inc. (NYSE: GS) slid in the final minutes of the day to close down 4.1% at $95.60. Morgan Stanley (NYSE: MS) was particularly brutalized and closed down 7.9% at $14.66.

Citigroup, Inc. (NYSE: C) also slid at the end of the day and closed down 4.1% at $26.86.
Bank of America Corporation (NYSE: BAC) slid at the end of the day to close down 3.75% at $5.90.  J.P. Morgan Chase & Co. (NYSE: JPM), supposedly the safest of the huge banks, slid at the end of the day and closed down 3.7% at $31.47.

Again, the outlook was called ‘stable’ but we would consider this as a vocalization that Europe is far from over and is yet one more tipping point that could pose systemic risk.

JON C. OGG

Contact [email protected] for any questions or corrections.

DISCLOSURE:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org). Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options  Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation.
Follow 24/7 Wall St. on Google
Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

Continue Reading

Jon C. Ogg |

Fitch Warns About Bank Earnings for the Rest of 2013

ThinkstockIs it possible that the great big bank stock rally is already done? Shortly before the closing bell on Tuesday…

Jon C. Ogg |

The Moody’s Giant Bank Downgrade Finally Arrives

24/7 Wall St. has been expecting this highly anticipated Moody’s downgrade of the large banks and investment banks for weeks. …

Jon C. Ogg |

Fitch ‘Warning’ Hits Morgan Stanley Far Worse Than Peers (MS)

Morgan Stanley (NYSE: MS) reacted to today’s Fitch ‘warning’ about Eurozone contagion spreading to U.S. banks the worst of all…

Jon C. Ogg |

S&P Downgrades Spain, Warns Of More Cuts (STD, BBVA)

Standard & Poor’s has just lowered the sovereign credit rating of Spain.  We have warned that the downgrades were not…

Douglas A. McIntyre |

S&P Say JPMorgan Outlook Negative

A few hours after a Fitch downgrade, S&P said its outlook for JP Morgan (NYSE: JPM) has gone from “Stable”…

Fitch Offers Brighter US and Emerging Market GDP Growth in 2017, Less So for China
Jon C. Ogg |

Fitch Offers Brighter US and Emerging Market GDP Growth in 2017, Less So for China

As the year comes to an end, you can expect to see more and more 2017 forecasts. Fitch Ratings is…

Jon C. Ogg |

High Concentration Of All Derivative Risk In Only Six Large Financial Firms (JPM, BAC, GS, C, MS, WFC)

Fitch has already warned today that if the United States dos not get a credible fiscal plan after the elections…

10 Credit Ratings Actions That Could Increase Corporate Borrowing Costs in the COVID-19 Recession
Jon C. Ogg |

10 Credit Ratings Actions That Could Increase Corporate Borrowing Costs in the COVID-19 Recession

Here are 10 fresh credit rating actions that investors will want to consider when analyzing the finances of companies.

Jon C. Ogg |

Fitch Sees Fiscal Cliff as Largest Risk to Cutting Global Growth

Fitch Ratings has a report out this Thursday calling the coming fiscal cliff as the ultimate risk to the global…

Top Gaining Stocks

Meta
META • Vol: 40,760,422
CarMax
KMX • Vol: 2,288,021
Weyerhaeuser
WY • Vol: 6,523,553
SBA Communications
SBAC • Vol: 1,443,801
NVIDIA
NVDA • Vol: 148,249,982

Top Losing Stocks

Moderna
MRNA • Vol: 9,176,778
Coterra Energy
CTRA • Vol: 73,319,495
CrowdStrike
CRWD • Vol: 9,269,567
Datadog
DDOG • Vol: 5,135,556
EPAM Systems
EPAM • Vol: 1,164,561