- NYSE:C gained a further 1.18% on Thursday as the broader markets rebounded from Wednesday’s uncertainty.
- The Democratic-run senate should be positive for the big bank industry.
- Citigroup prepares for its historic new CEO next month.
NYSE:C along with the other big banks in the United States has had a red-hot start to 2021 as the incoming Biden administration promises to have a positive impact on the US banking sector. After surging on Wednesday, Citigroup gained a modest 1.18% on Thursday to close the trading session at $66.02 as the stock continues to edge towards its 52-week high price of $83.11. Shares of Citigroup are now comfortably above both the 50-day and 200-day moving averages which paints a nice picture of the upwards trajectory the stock is on.
The Democrats were successful in winning the Georgia runoff election on Wednesday which means the Blue Wave is going to hit the American economy as President-elect Biden takes office later this month. One of the big benefits for the big bank industry is the pending stimulus package that the Democrats are preparing to hand out to American citizens. These actually help the big banks in that it allows fewer people to default on their loans, something that costs banks billions of dollars every year. Since many of the big banks have been saving money by not paying out dividends or making share buybacks, they will have plenty of capital to allocate into strengthening their business.
C stock forecast
Citigroup is also getting set for a big change in its corner office as long-time CEO Michael Corbat has announced his plans to retire in February of 2021 and hand the reins over to experienced Citigroup executive Jane Fraser. As the former head of Citigroup's’ Latin American arm, Fraser brings a wealth of experience in the Citigroup ecosystem and should slide right into the successful run that Citigroup has had under Corbat.
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