Stock markets will look at the financial sector for leadership when trading opens. Markets will have time to digest Citigroup (C), Wells Fargo (WFC), and JP Morgan (JPM) quarter results, posted before the market opens.
Bank stocks already rallied. Buying volume continued after the Fed’s stress tests allowed them to increase their stock buyback and dividends. JPM stock is especially attractive. The company set a goal to attract 15% of the country’s consumer deposits. If it achieves that, the bank could increase its earnings from net interest margin. In addition, it could sell credit cards to more customers, further increasing its profits.
In the automotive sector, consider General Motors (GM) over Ford (F). The firm will invest $900 million to retool its Michigan auto plant. This would enable the plant to build electric vehicles. Although demand for EVs is falling, the market has potential. Lithium prices are falling, which lowers GM’s input costs for batteries.
Watch Albemarle (ALB) stock today. The lithium miner’s stock bottomed at $90.32 earlier this week and briefly traded at close to $100. Other miners to consider include BHP Group (BHP), Rio Tinto (RIO), and Teck Resources (TECK). Mining stocks are generally attractive at current valuations.
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