This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bank Stocks Do It Again: Fiscal Cliff Winners

Stocks in this article: BAC AAPL GS I:BKX

NEW YORK ( TheStreet) -- Goldman Sachs (GS) was the winner among the largest U.S. banks on Tuesday, with shares rising 3.5% to close at $127.77.

The Dow Jones Industrial Average S&P 500 (SPX.X) each rose 1%, while the NASDAQ Composite was up 1.5%, as investors grew more confident that President Obama and the Republican leadership of the House of Representatives would arrive at a budget deal to avert the fiscal cliff.

The President late on Monday backed off his insistence that federal income tax rates be raised for couples earning $250,000 per year or more, instead offering on Monday to limit the increased tax rates to couples with annual incomes of $400,000 or higher. Speaker of the House John Boehner (R-Ohio) on Tuesday said during a press conference that while the Republicans had offered a balanced approach to averting the fiscal cliff by cutting the federal budget deficit through revenue increases and spending cuts, "the president is not there yet," since the president's latest offer on Monday was "essentially $1.3 trillion in new revenues for only $850 billion in net spending reductions."

Boehner said that although discussions with President Obama would continue, he would introduce legislation that would "protect the American taxpayers who make a million dollars or less, and have all their current rates extended."

"I continue to have hope that we can reach a boarder agreement with the White House that would reduce spending, as well as have revenues on the table," Boehner said, "but at this point having a backup plan to make sure that as few American taxpayers are affected by this increase as possible... is the right course of action."

Shares of Apple weighed heavily on the NASDAQ, rising 3% to close at $534.00. With Apple's shares down 24% since their closing high of $702.10, on Sept. 19, Investors obviously are suspicious that earnings estimates could continue to be cut.

Still, Apple's shares look cheap, trading for just 10.9 times the consensus fiscal 2013 earnings estimate of $48.91 among analysts polled by Thomson Reuters. The consensus fiscal 2014 EPS estimate is $57.34, and Apple announced on Monday that it had sold over two million iPhones in China, "just three days after its launch on December 14."

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs