It was an uneventful session on Thursday, although there werekey narratives. Perhaps it’s all muscle memory at this point; all the major equity indices reached all-time highs during the session, only to tumble into the close. There was no panic, but there’s a realization that the last round of earnings saw even big beats being greeted with selling.  

Financials slumped after earnings from JPMorgan & Chase (JPM) and Citigroup (C) raised red flags about consumers. 

• JPM loan loss provisions climbed $223 million from a year ago

• Citibank consumer business credit losses surged 26% from a year ago

After soaring in the weeks following the election, it’s been difficult for financial and big banks in particular. September was a good month as higher interest rates loomed; however, so much of the business revolves around trading that it seems these banks should get back to basics such as lending money to Main Street. 

KBE

The best performing S&P sector was industrials. The Dow Jones Transportation (DJT) hit an all-time high, led by truckers the day after President Trump spoke to drivers about the benefits of his tax plan for the industry.

DJT

Bitcoin Takes Center Stage 

The big winner of the day and the year was bitcoin, which rallied more than 10% yesterday and is up 438% for 2017. The cryptocurrency has been dissed by Jamie Dimon and shut out by China. Still, it’s been unstoppable. 

And yet, everyone agrees the blockchain technology behind these cryptocurrencies is revolutionary with the potential to eliminate online fraud and perhaps fiat currencies as well.   

I’m not long on bitcoin, but I am looking for ways to benefit from blockchain and cryptocurrencies. 

Today’s Session

The major indices are all up this morning.  Financials and healthcare (more later) however are under pressure.