Strategas Research Partners’ Chris Verrone and Todd Sohn note that financial stocks–including JPMorgan Chase (JPM), Wells Fargo (WFC), U.S. Bancorp (USB), and Bank of America (BAC)–are still the place to be in this sideways market:
While the market has spent the last six weeks in a historically narrow range, leadership continues to gravitate to the more risk-on and pro-cyclical groups. The S&P finished lower yesterday, though breadth was even at 1:1 on the NYSE and both high-beta and small-caps traded to fresh relative highs.
