Good news all around this morning, but the market is ignoring this and selling off rather hard. Citigroup (C) and Bank of America (BAC) both reported good numbers. Currently, C and BAC are both trading down, -4.08% and -6.69% respectively. I think this is a good time to start building a position in BAC, and as I said in my first post, buy C under $4/share. Another important event was that BP was able to temporarily stop the leak. Whether or not the new cap will hold is yet to be seen, but the key now is to get the relief wells finished to permanently stop the leak. Also, Goldman Sachs agreed to pay $550 million in conjunction with misleading investors in CDOs linked to the subprime mortgages. This fine is not too much, about a couple weeks of profit for the firm. The stock has already spiked after the news, but I expect the stock to trend higher as the shorts exit and value investor buy in.
Headed into this weekend, I would buy on this weakness. They do not need to be high beta plays, risky investments; rather, buy into those dividend paying names (see June 29th post)- MO, VZ, WM, etc.