|Bid||35.00 x 1200|
|Ask||35.71 x 1000|
|Day's Range||35.52 - 37.03|
|52 Week Range||28.38 - 59.14|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-35.06%|
|Beta (5Y Monthly)||1.58|
|Expense Ratio (net)||0.35%|
The stock market late-morning Thursday jumped into positive territory after a report indicated that officials from the Federal Deposit Insurance Commission would move to ease some regulations for the banking sector following a meeting. According to a Bloomberg report,cited by CNBC, the FDIC and another regulator, the Office of the Comptroller of the Currency, will soon vote on rolling back rules that prohibit banks from using their balance sheets to invest in companies and other assets, the regulators may also loosen rules pertaining to the amount of cash and cash equivalents the financial institutions would be required to set aside for reserves. The rules are related to regulations that were implemented in the aftermath of the 2008-09 financial crisis, known as the Volcker Rule, named after former Federal Reserve Chairman Paul Volcker. Shares of banks briefly burst higher on Thursday. The exchange-traded fund Financial Select Sector SPDR ETF which tracks the S&P 500's financial sector, was trading 1.5% higher, as was the SPDR S&P Bank ETF and the Invesco KBW Bank ETF . The S&P 500 index was off less than 0.1%, at last check, while the Dow Jones Industrial Average was trading little changed at 25,442 and the Nasdaq Composite Index was about 0.1% higher at 9,913. The broader market had started trade lower amid signs of rising coronavirus cases. The reports for banks also come ahead of a stress test of the financial sector, with the results expected to be released at 4:30 p.m. Eastern Time Thursday.
Financial-sector exchange-traded funds pushed higher Friday as bond yields rose after a blowout May jobs report nudged investors into riskier assets. The Financial Select Sector SPDR Fund was 4.7% higher at midday, while the Invesco KBW Bank ETF was nearly 6% higher. Bond yields move in the opposite direction of prices. The gap between 2-year Treasury notes and those maturing in 10 years touched its widest in about two years, bolstering the business case for banks.
Exchange-traded funds that track financial sector stocks outperformed Monday as interest rates shifted to the benefit of banks and other lenders. The Financial Select Sector SPDR Fund was 1.3% higher midday, and the SPDR S&P Regional Banking ETF was 1.7% higher. The Invesco KBW Bank ETF popped 2.3%. Although interest rates remain low across the board, the difference between 5-year bonds and those with 30-year maturities has recently widened to the biggest differential since May 2017, according to a MarketWatch analysis, a condition that's more favorable for banks that make loans and pay interest on deposits. That so-called steepening of the yield curve comes as a report on manufacturing suggested the U.S. economy may have begun to recover from a steep decline during the spring due to coronavirus lockdowns.
Goldman Sachs suggests these stocks are flashing recessionary indicators as fears run rampant over the coronavirus.
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The Federal Reserve could make major changes to bank rules and alleviate some of the pressure on the financial sector and related ETFs. The Fed said it would vote October 10 on a measure to ease liquidity ...
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Though the latest steepening of the yield curve benefited bank ETFs on Sep 9, chances of volatility in the longer-term period may keep gains in bank ETFs at check.
Bank sector-related ETFs found strength Monday as government bonds pulled back and yields climbed on easing investor fears surrounding a U.S.-China trade war that has shown signs of de-escalation. On Monday, ...