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Banks Poised To Lead S&p 500 As Jpmorgan Beats Microsoft

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http://www.bloomberg.com/news/2013-07-28/banks-on-brink-of-s-p-500-supremacy-as-jpmorgan-beats-microsoft.html

U.S. financial companies, fueled by the fastest earnings growth in the Standard & Poor’s 500 Index, are poised to reclaim their position as the market’s biggest industry for the first time since the credit crisis.

Banks, brokers and insurance companies make up 16.8 percent of the S&P 500, almost double the level from 2009 and closing in on technology companies at 17.6 percent, according to data compiled by Bloomberg. Bank of America Corp. and Morgan Stanley are helping lead gains in the index this month after profits topped analyst estimates. Intel Corp. and Microsoft Corp. are among the worst after earnings trailed forecasts.

For bulls, the change signals banks will lead the economy even after the Federal Reserve begins to reduce stimulus. Bears say S&P 500 profits would be down this quarter if not for banks. They note that the last time financials were the biggest industry was in 2008 and the consequences were disastrous.

“The fact that we are seeing banks perform reasonably well provides a certain sense of confidence in the underlying economy,” Kevin Caron....

Great news the banks once more dominate the economy, all that free money has worked it's magic.

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“The fact that we are seeing banks perform reasonably well provides a certain sense of confidence in the underlying economy,” Kevin Caron, a Florham Park, New Jersey-based market strategist at Stifel Nicolaus & Co., which oversees about $130 billion, said in a July 25 phone interview. “Without the financials working, it would be hard to imagine that all the rest would be working at all.”

“The fact that we are seeing banks perform reasonably well provides a certain sense of confidence in the underlying economy,”

Delusional

How the banks perform doesn't seem to make much difference to "the rest" - the banks have clearly arranged it so that if the banks are doing well or doing badly "the rest" are still up a gum tree and don't get a look in.

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