A Double Opportunity in Bank Stocks?

At the halfway mark for second quarter earnings season, the financial sector is clearly doing the heavy lifting in keeping the S&P 500 from a very ugly turnout. According to Factset, the 1.8% earnings growth rate for the benchmark index would sink to -2.9% if not for the strong performance of the financial sector. Led by stronger-than-expected earnings from the likes of JPMorgan Chase (JPM) and Bank of America (BAC) the financials’ earnings growth rate has come in at nearly 11% ahead of what the street expected. The only other strong upside surprise sector has been healthcare at +7.2% according to Factset.