The Zacks Analyst Blog Highlights: JPMorgan Chase, Bank of America, Wells Fargo, Goldman Sachs and Citigroup

  The Zacks Analyst Blog Highlights: JPMorgan Chase, Bank of America, Wells                       Fargo, Goldman Sachs and Citigroup  PR Newswire  CHICAGO, May 14, 2012  CHICAGO, May 14, 2012 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include JPMorgan Chase (NYSE:JPM), Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS) and Citigroup (NYSE:C).  (Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)  Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513  Here are highlights from Friday's Analyst Blog:  JPM Trading Loss Hits Bank Stocks  Following the announcement of a huge trading loss at JPMorgan Chase & Co. (NYSE:JPM), the banking sector stocks fell in the after-market trading on Thursday. In its quarterly regulatory filing, JPMorgan stated that its chief investment office (CIO) has incurred substantial mark-to-market losses during the first six weeks of the current quarter.  CIO is a unit of JPMorgan, which it uses to make broad-based bets in order to hedge its loan portfolio.  JPMorgan incurred a huge loss of nearly $2 billion in its synthetic credit portfolio, which was partially mitigated by securities gain of $1 billion. This portfolio is under Corporate division, within the Corporate/Private Equity segment. The company stated that Corporate is now expected to report a net loss of about $800 million for the second quarter, which was previously estimated to be a profit of $200 million.  This shocking revelation shattered the confidence level of the investors and JPMorgan's shares plunged nearly 7% in the after-market trading. This also dragged down the stock prices of the entire banking sector. Likewise, the shares of banking giants, like Bank of America Corporation (NYSE:BAC), Wells Fargo & Company (NYSE:WFC), The Goldman Sachs Group Inc. (NYSE:GS), Citigroup Inc. (NYSE:C), etc. were down more than 2% in after-hours trading.  Last month, Wall Street Journal reported that JPMorgan had been heavily investing in an index of credit default swap (a type of derivative), which was to protect the company against the potential losses on its large holdings of loans and bonds. However, JPMorgan's strategy backfired as the repositioning of the credit portfolio was poorly monitored and executed, leading the recent huge losses.  Further, JPMorgan incurred losses at a time when regulators had already set the date for the implementation of Volcker rule.   Moreover, JPMorgan runs the risk of further hedge-related losses over the quarter. These losses are expected to significantly dampen the company's overall financial results in the second quarter.  Currently, JPMorgan retains a Zacks #3 Rank, which translates into a short-term Hold rating. Considering the fundamentals, we also maintain a long-term Neutral rating on the stock.  Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.  About Zacks Equity Research  Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.  Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.  Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517  About Zacks  Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.  Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.  Follow us on Twitter: http://twitter.com/zacksresearch  Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts  Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.  Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com http://www.zacks.com    SOURCE Zacks Investment Research, Inc.  
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