This Day On The Street
Continue to site
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

Citigroup: Market Momentum Winner

NEW YORK ( TheStreet) -- Citigroup (C - Get Report) was the winner among the largest U.S. banks on Tuesday, with shares rising 1.5% to close at $43.60.

The broad indexes all ended with 1% gains, after the Dow Jones Industrial Average (^DJI) set a new all-time intraday record high. The KBW Bank Index (I:BKX) was up slightly to close at 55.01, with all but six of the 23 index components rising for the session.

"The retail investor has come back in with a fury, relative to what we have seen the past two years," said Cuttone Director of Sales and Marketing Keith Bliss, in an interview with TheStreet. But Cuttone warned that "when retail investors really plow hard into a market, that generally signals a top."

"We have never seen this amount of involvement from the central banks around the globe, playing inside the asset markets," Cuttone said, adding that stimulative monetary policy has made equity markets "the only place where you can get substantial yield."

Any concerns that investors have had over the $85 billion in mandatory federal budget cuts that kicked in last Friday has apparently been outweighed by Federal Reserve Chairman Ben Bernanke's strong defense of the central bank's "highly accommodative" monetary policy.

"The Fed's current quantitative easing (QE) policy of buying $85 billion in Treasury and mortgage securities per month swamps the $85 billion sequester for the fiscal year 2013," said UBS economist Maury Harris in a report early Tuesday. "Public confidence gauges are improving despite the highly publicized sequester headlines, as QE has helped boost job growth... and politicians' doomsday sequester rhetoric may not be very credible for a public expressing little confidence in their elected leaders," Harris wrote.

Tuesday's economic news supported the increased confidence in the U.S. economic recovery. The Institute for Supply Management on Tuesday said that its Non-Manufacturing Index (NMI) increased to 56.0% in February from 55.2% in January. The consensus among economists was for the index to rise to 55.3, according to Zacks.

Citi Conference

At his firm's Financial Services Conference on Tuesday, Citigroup CEO Michael Corbat outlined the company's long-term goals, which include growing earnings sufficiently to achieve a return on tangible common equity (ROTCE) of 10.0% by 2015. The company's unadjusted 2012 ROTCE was 7.9%.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
C $39.86 0.00%
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs