Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Why Citigroup Inc (C) Is in the Green Today

Citigroup Inc (NYSE:C)Two hours into trading, Citigroup Inc (NYSE:C) is up 0.8%, riding the market wave of reassuring — or at the very least not terrifying — congressional testimony from Federal Reserve Chairman Ben Bernanke. Monday’s positive second-quarter earnings report isn’t hurting the stock’s performance today either.

The Great Oz has spoken
Bernanke is testifying on monetary policy today before the House Committee on Financial Services; tomorrow he’ll do the same before the Senate banking committee. Most on the minds of investors is the fate of quantitative easing, which the markets have come to depend on over the last four years, at least psychologically.

So far, Bernanke’s comments seem to indicate that the Fed remains on course to begin tapering QE later this year, so long as U.S. economic data remains positive. But at the same time, the central bank believes the economy is clearly not where it should be — thus indicating the continuation of accommodative monetary policy.

Foolish bottom line
In fact, more than just indicating continuing accommodative monetary policy, Bernanke is explicitly committing the central bank to it: “With unemployment still high and declining only gradually,” the Fed chairman said, “and with inflation running below the Committee’s longer-run objective, a highly accommodative monetary policy will remain appropriate for the foreseeable future.”

Yet Bernanke hasn’t backed off on tapering. He’s trying to have it both ways: keep the tapering plan in place and reassure the markets the Fed will be there to support the U.S. economy. Normally, that sort of thing doesn’t work, but today, it seems to be. Not only are Citigroup Inc (NYSE:C) and its Big Four peers trading up, so are the markets in general, with the S&P 500, the Dow Jones Industrial Average, and the Nasdaq all currently in the green.

Naturally, Citigroup Inc (NYSE:C)’s strong second-quarter results are also keeping the bank’s investors happy today. On Monday, Citigroup Inc (NYSE:C) reported that net income for Q2 grew by 42% year over year, while total revenue grew by 11%. Earnings per share were $1.34, up from $0.95 a year ago. The bank grew its business in key, fundamental areas as well — in deposits and loans, for instance.

So, Citigroup Inc (NYSE:C) investors have reason to be happy so far today and this week, but also remember that investing Foolishly means investing for the long term: tuning out market noise — like today’s — and focusing on the fundamentals of the companies you’re invested in. Check on your stocks once a month, or even once a quarter, and leave the daily ticker checks to the day traders: Your portfolio will thank you, even if your broker won’t.

The article Why Citigroup Is in the Green Today originally appeared on and is written by John Grgurich.

Fool contributor John Grgurich owns shares of Citigroup. Follow John’s dispatches from the not-so-muddy trenches of high-finance and big-banking on Twitter @TMFGrgurich. The Motley Fool owns shares of Citigroup.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.