Two big financials reported quarterly earnings today that open up more questions about the sector. Bank of America ($BAC) easily beat estimates for net income and revenue, however the big number was aided by one-time gains in sales of assets.
Goldman Sachs ($GS) on the other hand reported net income that came in well below estimates and their first loss since 2008 AND only their 2nd loss ever since it became a public company.
Both stocks recently moved into the green in pre-market trading, well off the early morning lows as buyers are stepping in to buy. I would not be surprised if the two stocks are able to close with gains today (a lot depends on news out of Europe) because in my opinion the bad news has already been priced into the stocks.
The SPDRs Financial ETF ($XLF) will be one to watch as the day unfolds. A close above $13.25 in the next week would be very bullish for the sector and the market.
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