The broad indices all rose on Tuesday, after Jim Cramer earlier called this year's very strong run for stocks " the most ignominious bull market of all time."
"The market has taken out a record set in 1927, set two years before the great crash, and that represents a remarkable statement about just how dangerous this stock market really is," Cramer wrote. The broad market was up for a 19th consecutive Tuesday. The previous record of market increases was 15 consecutive Tuesdays, set in 1927, two years before the market crash of 1929.
"I know these things are silly," Cramer wrote, but pointed out that this type of statistic illustrates "the tyranny the bears have over the bulls."
The KBW Bank Index (I:BKX) was up slightly to close at 61.53. Heading into JPMorgan Chase's annual shareholder meeting, the big question was whether or not shareholders would approve a proposal to separate James Dimon's dual roles as CEO and chairman of the board of directors. Shareholders rejected the proposal, with only 32.2% in favor, according to the company's preliminary vote count. This was lower than the 40% who voted in favor of a similar proposal at the 2012 annual meeting. The negative vote came despite the support for the measure among proxy advisory firms Glass Lewis and Institutional Shareholder Services.
In a note to clients following the vote, Sterne Agee analyst Todd Hagerman wrote that the measure to split Dimon's roles was "rather convincingly voted down . . . indicating more broad-based support for the current scope of the combined CEO/Chairman role." "Given Jamie Dimon's successful stewardship of JPM, our view is that fewer disruptions to his role ultimately benefits JPM and its shareholders," Hagerman wrote. Now that the flurry over Dimon's continuing role has been settled, "the incremental headline risk associated with a potential management re-shuffling should subside, with an increased investor focus on the company's otherwise solid operating results," according to Hagerman. With a regulatory target on its back in the wake of the "London Whale" hedge trading losses within the firm's Chief Investment Office last year, as well as several other regulatory actions or investigations, JPMorgan Chase continues to trade at a significant discount among the "big six" U.S. banks:
- JPMorgan's shares at Tuesday's close traded for 8.9 times the consensus 2014 earnings estimate of $5.94 a share, among analysts polled by Thomson Reuters.
- Citigroup's (C - Get Report) shares on Tuesday closed at $ 51.66 and traded for 9.7 times the consensus 2014 EPS estimate of $5.32.
- Morgan Stanley (MS - Get Report) closed at $25.12 and traded for 9.9 times the consensus 2014 EPS estimate of $2.54.
- Shares of Bank of America (BAC - Get Report) closed at $13.44 and traded for 10.4 times the consensus 2014 EPS estimate of $1.29.
- Goldman Sachs (GS) closed at $160.73 and traded for 10.5 times the consensus 2014 EPS estimate of $15.27.
- Wells Fargo (WFC - Get Report) closed at $40.68 and traded for 10.7 times the consensus 2014 EPS estimate of $3.81.
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-- Written by Philip van Doorn in Jupiter, Fla. >Contact by Email. Follow @PhilipvanDoorn