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Earlier gains on the stock market today are slipping away. Financials had been leading the way, and these stocks are now trying to hold on to what they can. Indeed, things have turned somewhat dour since stocks around the world are pulling back. Even today’s positive news that unemployment filings fell last week have been unable to keep the stock market in the black. For now, though, many financial firms are seeing share price gains. And some of the names might surprise you. Here are some of the companies seeing gains today on the stock market, even as the general market heads in the negative direction:

• AIG
• American Express
• Fortress Investment
• CIT Group
• MBIA
• Genworth
• Citigroup
• Hartford Financial

It appears that government help has managed to keep some companies, formerly bordering on insolvency, going. And, of course, a general feeling that the worst of the recession is over pervades, helping investors feel a little more confident in financial stocks. JP Morgan Chase, Fifth Third and SunTrust, however, are not seeing the same gains. But that may mean that now is a good time to buy while they are down. The Financial Selext Sector SPDR has moved lower, tracking the overall performances of the financial sector.

Choosing financial stocks

It is important, going forward, to be careful about which stocks you invest in. While it appears that the worst of the recession is over, and that the financial world is mostly recovered from the financial crisis (bank profits are recovering quite nicely), there are still some concerns. And one also has to consider that this sort of thing could happen again. Trying to pick any stock is a tricky business. However, if you are into picking stocks, now is the time to get in while the market is still relatively down, and has the potential to gain significantly in the next two to five years. (Actually, the best time to get in was back in January and February, when the Dow was extra low. Or even a couple months ago while the Dow was below 8,000.)

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

The Dow Jones Industrial Average is taking a downward turn today as excitement over an insurance sector rally wears off. Insurers had been rallying on the news that TARP funds would be made available to them. CNN Money reports on the eligibility required for insurance companies to be considered for the government capital:

To be eligible for the program, insurers either had to already own a lender or acquire one, and apply by a November deadline.

Life insurers, which together hold trillions of dollars in investments, have been particularly susceptible to the financial crisis, and for that reason may have been cleared for financial assistance.

The sector has been broadly hurt in recent months by weaker financial markets that caused investment losses and higher costs for annuity products that are affected when market values fall.

However, some of the insurers are already expressing disinterest in taking the money. The conditions imposed on the big banks accepting TARP funds has been a discouragement. Many of the companies say that they are in reasonably good shape right now, and might not need the money.

At any rate, after a morning spent in flux, including time spent in positive territory, the stock market is now lower. The Dow, Nasdaq and S&P 500 are all down right now (although the Nasdaq is down by less than 2 points). Clearly some of the optimism is wearing off as investors begin to focus on other things.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

Yesterday, the U.S. stock market plunged in a rather dramatic fashion. Dropping more than 250 points, the Dow showed great agitation. This bear market correction — putting an end to days of bear market rally — caused some to think that more problems are in the future. Today, though, the stock market bounced. As closing approaches, the Dow is up more than 115 points from yesterday, and it appears as though cautious optimism about the economy has returned.

Part of the success for the stock market today is probably due to financial sector stocks. Both Bank of America and Citi are thriving today, up substantially, and leading the entire stock market. One of the main reasons is that Tim Geithner spoke on the economy and the banking system, providing some hope for investors that things are stabilizing.  It also helps that some major financial institutions are talking about how they are ready to pay back TARP funds. With their profits, they are claiming to be well-capitalized and wealthy enough that they don’t need to rely on government bailout money. It’s a nice thought for everyone involved.

Another group probably helping the stock market today: bargain hunters. Bargain hunters are out in force, looking for the deals amongst yesterday’s wreckage. And the stock market hasn’t even managed to fully recover from yesterday, with the Dow only regaining about half the points it lost. But it’s a start. And means that there are still plenty of bargains to pick up tomorrow.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.