|Bid||0.00 x 4000|
|Ask||0.00 x 1000|
|Day's Range||48.11 - 49.23|
|52 Week Range||43.15 - 52.00|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.35%|
Great Southern Bancorp Inc. said Wednesday it has raised its quarterly dividend to by about 14% to 32 cents a share from 28 cents a share. The stock rose 0.4% in midday trade. The new dividend is payable Oct. 15 to shareholders of record on Oct. 1. The new annual dividend rate implies a dividend yield of 2.24%, compared with the yield for the SPDR S&P Bank ETF of 1.45% and the implied yield for the S&P 500 of 1.76%, according to FactSet. Great Southern's stock has rallied 10.4% year to date, while the bank ETF has edged up 2.9% and the S&P 500 has gained 8.8%.
Bank and financial sector-related ETFs have been underperforming despite the rising interest rate environment, and the segment of the market may continue to drag its feet. The Financial Select Sector SPDR (XLF) rose 1.2% and SPDR S&P Bank ETF (KBE) gained 2.5% so far this year, whereas the S&P 500 increased 10.1%. Despite the Federal Reserve's intention to continue raising interest rates, Matt Maley, equity strategist at Miller Tabak, highlighted the recent underperformance in banks and issued a warning over the weakness, CNBC reports.
Shares of Citigroup Inc. rallied 2.2% in morning trade, to buck the broad selloff in the banking sector, after the bank's upbeat presentation at the Barclays Global Financial Services Conference. Citi's stock one of just two gainers within the SPDR S&P Bank ETF , which slid 1.3% with the other 78 equity components losing ground. Buckingham Research analyst James Mitchell reiterated his buy rating and $101 price target on Citi's stock after the presentation. "Although profitability targets were largely unchanged, greater specificity around the intermediate-term trajectory of revenue, efficiency and [return on average tangible common shareholders' equity] adds confidence," Mitchell wrote in a note to clients. "Bottom line, today's updated guidance implies additional EPS upside vs. consensus from 2019-2020." The weakness in the banking sector comes after a surprise decline in wholesale inflation data sparked a rally in Treasurys and a decline in Treasury yields. Citi's stock has gained 4.7% over the past three months, while the bank ETF has lost 2.7% and the S&P 500 has tacked on 3.4%.
Bank stocks and the related exchange traded funds are vexing investors this year. The SPDR S&P Bank ETF (NYSE: KBE), for example, is up 4.2 percent year-to-date while the S&P 500 is higher by almost 7 percent. The laggard status of the financial services sectors comes against the backdrop of two interest rate hikes by the Federal Reserve and expectations for more rate increases before the end of 2018.
The SPDR KBW Bank ETF (KBE) is up 4.20% year-to-date, but with the Federal Reserve tightening interest rates, some investors expected more out of bank stocks and the related exchange traded funds. Bank stocks and financial sector exchange traded funds may continue to strengthen as strong fundamentals help support this market segment’s outlook. Supporting the financial sector, U.S. banks revealed record quarterly profits to start 2018 as a result of the new tax laws, rising interest rates and improving economy.
It's generally acknowledged that banks benefit from a steeper yield curve. For evidence, look no further than the Financial Select Sector SPDR ETF (XLF), which has dropped 5% this year as the difference between the yields on the 10-year and two-year Treasuries narrowed to 0.28 percentage point from 0.54 at the beginning of the year. George Pearkes, macro strategist at Bespoke Investment Group, noted that yield curves are not as instructive in forecasting bank stocks as the short-term yield by itself.
Overall, it hasn't been a good year for the financial sector as evidenced by the S&P 500 Financials index down 1.71 percent year-to-date. Things could get more interesting if blockchain technology, the underlying technology that forms the basis of cryptocurrencies, takes off and disrupts or vastly improves the industry. The two bucking the downtrend are SPDR S&P Regional Banking ETF (KRE) --up 7.47% year-to-date and SPDR S&P Bank ETF (KBE) --up 3.28% year-to-date.
Dow Jones stock Goldman Sachs rose Monday ahead of this week's Federal Reserve monetary policy meeting, which could give bank stocks a boost.
Bank of America Corporation ( BAC) CEO Brian Moynihan tossed a grenade into the commercial banking sector's recovery efforts during a mid-week conference, telling investors and analysts that second quarter revenues from sales and trading would be flat compared with 2017 if business doesn't pick up in the final month of the quarter. Regional banks have fared better, with the top regional bank sector fund gaining more than 8%. Investors hope trade tensions ease in the coming months, but that appears unlikely given recent saber-rattling by the Trump administration.
Bank stocks and financial sector exchange traded funds may continue to strengthen as strong fundamentals help support this market segment’s outlook. Year-to-date, the Financial Select Sector SPDR (NYSEArca: ...
Key market index funds were down across the board as General Electric weighed on the Dow but Boeing soared on its earnings report.
The weakness in bank stocks following their earnings reports is concerning, writes Matt Maley, equity strategist at Miller Tabak.
One of the most encouraging things you want to see in the equities market is when a stock rallies in the face of bad news. This is exactly what we've seen in several key bank stocks recently, like JPMorgan JPM , Citigroup C and Goldman Sachs GS , which gives me pause about the group as a whole. Remember, the spread between the 2- and 10-year Treasury yields just hit a fresh 11-year low, to less than 45 basis points (less than half of 1 percent).
Ron Kruszewski, Stifel CEO, discusses the state of the financial sector and the economy as trade tensions flare up, as well as his thoughts on the trendier investments like bitcoin and cannabis.
Former Congressman Barney Frank (D-Mass.) and Richard Hunt, Consumer Bankers Association, discuss Dodd-Frank reforms Congress is voting on today that will loosen regulation on smaller regional banks.
It's been a blowout season for the banks, but financials are still negative for the year. A look at what's holding them back, with Jason Goldberg, Barclays.