NEW YORK (TheStreet) -- Yesterday's stock-market rally has already fizzled, with the S&P 500 Index little changed today. That's because details of how the European bailout will be implemented aren't clear, creating another wave of uncertainty and instability. So where should you invest?
Two banks --
-- along with network-gear maker
are poised to outperform once the dust settles on the European bailout. The banking and technology industries have been hit hard, with both reaching new 52-week lows at the start of October. But these dividend-paying stocks are a safe place to hide while markets find stability, and they will benefit when a real rally takes hold.
Dow Jones Industrial Average
yesterday jumped 340 points, topping 12,000, the highest level since August. A deal between European leaders to address the region's sovereign debt crisis, which had dragged on for months, caused investors to celebrate.
The performance has investors fired up, with the Dow on track to report its best October performance in decades and the VIX, which measures the market's volatility, sinking 15%, indicating a push back into equities by investors.
While this is all great news, investors aren't home free. Many details of the European bailout are still to be finalized and the implementation of the plan could be difficult. This will allow for major moves in the market, in either direction, to continue for some time. The G-20 summit next week will be the first test.
JPMorgan is one of the few big banks that's attractive. It's well-capitalized and provides a divided yield of 3%, a better return than leaving your money in a checking account at the bank's Chase unit. Even though banking business isn't booming now, JPMorgan is set to benefit immensely once the economy picks up steam.
M&T Bank is a regional player with a material amount of insider ownership -- always a good sign. It doesn't hurt that billionaire investor
. With strict underwriting policies, loan write-offs at this bank have been negligible. And there's a 3.5% dividend yield.
Finally, Cisco Systems has loads of cash -- nearly $45 billion. The company is buying back shares, looking for acquisitions and even issued its first-ever dividend this year. Cisco trades cheaply at 11 times earnings, with analysts bullish on the company, as half rate the stock "buy."
>>To see these stocks in action, visit the
portfolio on Stockpickr.