Financial Stock Favorites

  • November 29, 2000
  • Jon Najarian

The U.S.
economy came back to earth, at least according to the latest Commerce Department
report of GDP. Today’s report showed the economy was growing at an annual rate
of just 2.4% in the summer, the slowest pace in four years.

     

That was welcome news to DJIA stocks and greatly responsible for the 100 point
rally we’re looking at today. The non-inflationary numbers showed an annual
rate of just 1.9% in the third quarter. Additionally, the GDP showed the economy
expanding at a 2.7% rate in the third quarter. Traders on the floor hoped
this report would cause the Fed to move to a neutral bias.

     

That would be the first time since the Federal Reserve began raising interest
rates in June 1999 that the Fed changed its economic outlook and should benefit
one sector in particular: Financial stocks. 

     

Some of our favorites in the sector include: Goldman Sachs
(
GS |
Quote |
Chart |
News |
PowerRating), American
Express
(
AXP |
Quote |
Chart |
News |
PowerRating) and Morgan Stanley
(
MWD |
Quote |
Chart |
News |
PowerRating).