Financial exchange traded funds (ETFs) are showing renewed vigor after J.P. Morgan Chase & Co. (JPM) raised its Bear Stearns (BSC) offer from a paltry $2 a share to $10 a share.
J.P. Morgan also said it would bear the first $1 billion of any losses tied to the assets being financed in its buyout, reports Greg Morcroft for MarketWatch. The Federal Reserve will fund the remaining $29 billion.
The iShares Dow Jones US Broker-Dealers (IAI), of which Bear Stearns makes up 4.1%, is up nearly 4% in intraday trading. Other financial ETFs have been residing in positive territory this morning, as well, including Regional Bank HOLDRs (RKH), Financial Select Sector SPDR (XLF) and iShares Dow Jones US Financial Services (IYG).
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.