Financials; Similar story as most other groups today – financials are up across the board. There weren’t a lot of financials-specific stories out today $XLF $GS

Financials

· Similar story as most other groups today – financials are up across the board.  There weren’t a lot of financials-specific stories out today and a lot of the same overhangs remain (sluggish capital markets flows, tepid top line dynamics, credit improvement stalling out, etc).  The financials, esp. the banks, were the weakest stocks in Aug and are outperforming today on the upside.  The FDIC report from Tues morning still helping the space (a lot of newspapers this morning noting how earnings have returned to pre-crisis levels) and overall the group is underowned.  The next big catalyst will be mgmt presentations at the Barclays conf Sept 13-14. 

· Brokers – the group is higher across the board; SCHW up ~6% on the Raymond James upgrade; MS, GS, JEF, PJC, RJF, SF, etc, all up several %. 

· Asset managers – the group is climbing across the board (similar story as the rest of financials); AMG, BLK, EV, BEN, JNS, TROW, IVZ, etc, all up ~3%+. 

· Insurance – as usually happens when the broader group is rallying, life insurers are leading on the upside.  HIG, LNC, MET, PFG, AFL, GNW all up ~4%+.  P&C guys are lagging but still up on the day (up ~1-2%). 

· Banks – strength across the board; BAC leading the money centers (up nearly 5% on the day); the regionals are up several % across the board; the “safer haven” regionals are lagging (PBCT and HCBK…note that HCBK was d/g this morning @ Morgan Stanley today).