Midday market 05/01: JPM acquires FRC, Amazon Tesla continue to drag tech

Banks and small caps recover while Tesla and Amazon continue to drag tech

Stock market opens the first trading session of May quite sluggishly as although the JPM FRC deal is welcomed in the financial sector, liquidity overall continues to remain at extremely low levels from last night's futures session. Specifically JPM will acquire $173 billion debt and $30 billion secured assets as well as $92 billion deposits from FRC. This is considered an extremely beneficial deal for JPM as the consolidation process of small banks into large banks continues with JPM acquiring secured assets at extremely cheap prices while FRC investors bear most of the losses.