JPMorgan spikes on the deal it struck for Bear Stearns, but other banking giants dip in the wake of Bear's dramatic fall.
The financial services sector was shaken early Monday, the first trading day following news of JPMorgan Chase's buyout of Bear Stearns - for just $2 a share - in the face of a cash crisis that brought the firm to the brink of bankruptcy.
JP Morgan was the one bright spot in the banking sector with its shares jumping nearly 12% in early trade, helping lift the Dow into the black, as investors signaled their approval of the deal.
JPMorgan (JPM, Fortune 500) managed to buy Bear for "next to nothing," said Dave Rovelli, managing director of U.S. equities at Canaccord Adams. With the Federal Reserve backing the deal with $30 billion, JPMorgan "basically stole Bear Stearns," he said.
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