Dow Edges Higher With Help of Downgraded Financials
Jun 22nd 2012 12:01PM
Updated Jun 22nd 2012 12:06PM
|Dow Jones Industrial Average||53.51||0.43%|
|August WTI Futures||0.57||0.73%|
Source: Yahoo! Finance.
Yesterday, Moody's Investors Service took on the banking sector, downgrading 15 banking institutions, including Dow components Bank of America (NYS: BAC) and JPMorgan Chase (NYS: JPM) . Despite the downgrades, both banks are moving higher, with Bank of America up 0.38% and JPMorgan skyrocketing by 2%. The increase seems counterintuitive, but investors appear to see value in these financials; the downgrades have been expected for some time and they were not as severe as originally feared.
In the energy sector, First Solar (NAS: FSLR) continued its recent surge, up 9.3% already today. The company reached an agreement with Los Angeles County to resume its plans of constructing a 230-megawatt power plant. The energy sector also contains today's biggest mover in Harvest Natural Resources (NYS: HNR) , up 76% on the day after reports that the oil and gas producer is being acquired by Pertamina, Indonesia's state oil monopoly. This move is monumental not only because the $725 million deal is substantially higher than the $325 million market capitalization, but because it is an oil and gas firm leaving the socialist Venezuela.
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The article Dow Edges Higher With Help of Downgraded Financials originally appeared on Fool.com.Joel South owns shares of no company listed above. The Motley Fool owns shares of Bank of America, Harvest Natural Resources, and JPMorgan Chase. Motley Fool newsletter services have recommended buying shares of First Solar and Moody's. The Motley Fool has a disclosure policy.
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