The financial stocks are mixed as we start today’s trading. All eyes and ears are on Washington as everyone is anxiously awaiting to hear what Treasury Secretary Timothy Geithner has to say. The new stimulus plan is expected to cost over $1 trillion and is aimed at unclogging the credit markets that provide loans to consumer and businesses. It will also create a partnership with the private sector to help the banks with their bad assets.
Bank of America (BAC, $6.78, down $0.11), Goldman Sachs (GS, $96.97, down $0.92), JPMorgan (JPM, $27.02, down $0.26) and Visa (V, $55.90, up $0.58) were the ones we cut our exposure in yesterday.
The devil will be in the details and it’s hard to say how these stocks are going to react the rest of the day. The Dow is down 60 points to 8,210 and we will have to see if the Dow can rally once we get more clues on how this plan is going to implemented.