|Bid||27.16 x 900|
|Ask||27.14 x 321800|
|Day's Range||27.00 - 27.33|
|52 Week Range||22.05 - 29.07|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.11|
|Expense Ratio (net)||0.13%|
Shares of State Street Corp. slumped 0.4% in afternoon trade Wednesday toward a three-year low, extending losses after the financial services company warned that second-quarter net interest income (NII) would miss expectations given "the recent and significant turn in the interest rate environment." The stock had dropped 3.7% on Tuesday, after Chief Financial Officer Eric Aboaf said Tuesday at the Morgan Stanley U.S. Financials Conference that net interest income is now expected to be down about 8% from the first quarter, while the current FactSet NII consensus of $657 million implies a 2.4% sequential decline. Aboaf said the two main factors that are negatively impacting NII: a rotation into interest-bearing deposits from noninterest-bearing deposits, which has increased costs; and the flattening yield curve, particularly the decline in longer-term yields, has resulted in lower investment yield. The 10-year Treasury note yield has fallen to 2.121% on Wednesday from 2.686% at the end of 2018. UBS cut its stock price target to $68 from $75 while keeping its buy rating, while Raymond James lowered its target to $68 from $84 but maintained its strong buy rating. State Street's stock was on track to close at the lowest price since July 13, 2016. The stock has tumbled 20.5% the past three months and 13.1% year to date, to pace the SPDR Financial Select Sector ETF's decliners over both those time periods. The financial ETF has gained 3.0% the past three months and the S&P 500 has advanced 3.1%.
The results of the Federal Reserve’s Comprehensive Capital Analysis and Review, or CCAR, are soon to be released and that could mean higher dividends and increased share repurchases for a slew of domestic ...
Financial stocks enjoyed a broad rally Monday, after President Trump's declaration that he would not impose tariffs on imports from Mexico helped push up Treasury yields and spark a broader stock market rally. The SPDR Financial Select Sector ETF jumped 1.1%, with 63 of 67 components trading higher. Among the more heavily weighted components, shares of Goldman Sachs Group Inc. gained 2.5% to pace the Dow Jones Industrial Average's gainers, while J.P. Morgan Chase & Co.'s stock was in second with a 1.5% rise. Elsewhere, shares of Citigroup Inc. jumped 2.6% to pace the financial ETF's gainers, Bank of America Corp. hiked up 2.4% and Wells Fargo & Co. advanced 1.4%. The Dow gained 148 points, or 0.6%, and the yield on the 10-year Treasury note rose 4.5 basis points to 2.129%. Higher longer-term yields can help boost bank profits, as the spread between what banks earn on longer-term assets, such as loans, the cost of shorter-term liabilities used to fund those assets widens.
Financial stocks swung to losses in premarket trade Friday, after a big miss in the May jobs report sent Treasury yields lower, which could weigh on bank profits. The SPDR Financial Select Sector ETF fell 0.4% in premarket trade, after being up 0.3% just before the data was released. Among the ETF's most heavily weighted components, shares of J.P. Morgan Chase & Co. fell 0.7% after being up 0.3% just before the data; Bank of America Corp. swung to a loss of 1.0% after being up 0.3%; Citigroup Inc. dropped 1.1% after being up 0.3%; and Wells Fargo & Co. lost 0.7%, after gaining less than 0.1%. The yield on the 10-year Treasury note fell 3.9 basis points toward a 21-month low of 2.084%. Lower longer-term interest rates could hurt bank profits, as it could narrow the spread between what the banks make on longer-term assets, such as loans, and the costs of shorter-term liabilities. Meanwhile, futures for the Dow Jones Industrial Average inched up 4 points.
New research from Goldman Sachs suggests active managers could benefit from trading ETFs in the place of individual stocks when liquidity dries up.
As is the case with the other 11 months of the year, there are sector-level opportunities with exchange traded funds in June. Using the original nine sector SPDR ETFs (there are now 11) as the gauges, just two average positive returns in the month of June, according to CXO Advisory. In a month that historically rewards playing defensive, it's not surprising that the best-performing sector SPDR in June usually is the Utilities Select Sector SPDR (NYSE: XLU).
Prominent market technician Ralph Acampora says Wall Street needs new highs for him to be confidently bullish about the outlook for the stock markets, after a whipsawing period for the major indexes. But it’s not entirely clear that investors will see records in the immediate term.
The quarterly earnings cycle rarely leaves us much room to talk about our broad sector recommendations in our Special Opportunities portfolio -- Financial Select Sector (XLF) and US Energy ETF (IYE), notes Todd Shaver, editor of Bull Market Report.
Below is a look at ETFs that currently offer attractive buying opportunities. The ETFs included in this list are rated as buy candidates for two reasons. First, each of these funds is deemed to be in an uptrend based on the fact that its 50-day moving average is above its 200-day moving average, which are popular indicators for gauging long-term and medium-term trends, respectively. Second, each of these ETFs is also trading below its five-day moving average, thereby offering a near-term 'buy on the dip' opportunity, given the longer-term uptrend at hand. Note that this prospects list also features a liquidity screen by excluding ETFs with average trading volumes below the one million shares mark. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETFdb.com premium content, sign up for a free 14-day trial to ETFdb.com Pro.
Marsh & McLennan Companies said Thursday it will raise its quarterly dividend by 9.6%, to 45.5 cents a share from 41.5 cents. The new dividend will be payable Aug. 15 to shareholders of record on July 11. The financial services company's stock rose 1.4% in morning trade. Based on current price, the new annual dividend rate implies a dividend yield of 1.89%, which compares with the yield for the SPDR Financial Select Sector ETF of 1.94% and the implied yield for the S&P 500 of 1.99%, according to FactSet. Marsh & McLennan's stock has climbed 20.5% year to date, while the financial ETF has advanced 13.9% and the S&P 500 has gained 15.2%.
After slumping last year, the financial services is sector is on the path to redemption this year as highlighted by a year-to-date gain of nearly 13 percent for the Financial Select Sector SPDR (NYSE: ...
Bank of America Corp. said Wednesday it will raise its minimum hourly wage to $20 over a two-year period. The first incremental increase was to $17, which was made on May 1 and will be reflected in this week's paychecks. The rate will continue to increase until it reaches $20 in 2021. "We have raised our minimum wage because we believe that to best serve our customers and clients, we need the best teams," said Sheri Bronstein, chief human resources officer. The stock, which fell 1.0% in premarket trade amid a selloff in the broader stock market, has rallied 16.2% year to date through Tuesday, while the SPDR Financial Select Sector ETF has climbed 12.9% and the S&P 500 has gained 13.1%.
While the trade war dampens the economic outlook, some services-related ETFs could stand out or at least hold up much better than other sectors that rely on producing goods to turn a profit. Goldman Sachs ...
Energy Weekly: Will US Crude Oil Hold $60?(Continued from Prior Part)Energy subsector ETFsIn the week ending May 3, major energy subsector ETFs had the following performances:The VanEck Vectors Oil Services ETF (OIH) fell 5.5%.The SPDR S&P
How to Make Sense of Economic Indicators and Invest Accordingly(Continued from Prior Part)Wall Street and the economyIn developed economies like the US, the stock market and the real economy are closely linked, or at least this used to be the
Investors should consider sector-specific ETFs to focus on targeted segments of the market, especially as U.S. markets head in to the late business cycle. On the recent webcast, How Sectors Can Help with ...
April has drawn to a close and on the back of some solid first-quarter earnings reports, the financial services sector, the S&P 500's third-largest sector weight, delivered impressive gains in the fourth month of the year. The Financial Select Sector SPDR (NYSEARCA:XLF), the largest financial services exchange-traded fund (ETF) by assets, gained more than 9% in April.The financial services sector is considered a value play, not a growth segment, such as consumer discretionary or technology, but financials are a cyclical group and strength in this segment is widely viewed as advantageous for broader equity markets."A strong U.S. economy is naturally good for business: Most of the banks saw bigger-than-expected gains in consumer lending, deposits, and credit card spending," reports Barron's.InvestorPlace - Stock Market News, Stock Advice & Trading TipsData suggest investors are renewing their enthusiasm for financial services funds. While bank funds were among April's best ETFs, some were also the most popular ETFs to start the second quarter. As of April 29, XLF had monthly inflows of $1.39 billion, a total surpassed by just five other ETFs. * 10 Times Apple's Hardware Failed Consumers -- And Hurt Its Business For investors looking to make some bank with bank funds, these are some of the best ETFs to consider. SPDR S&P Bank ETF (KBE)Expense Ratio: 0.35%, or $35 annually per $10,000 investedThe financial services sector includes more than just banks, but for investors looking to focus on traditional banks, the SPDR S&P Bank ETF (NYSEARCA:KBE) is one of the best ETFs to consider.Home to 88 stocks, KBE provides "exposure to the bank segment of the S&P TMI, which comprises the following sub-industries: asset management & custody banks, diversified banks, regional banks, other diversified financial services and thrifts & mortgage finance sub-industries," according to State Street.KBE, which added $84.22 million in April (as of April 29), equally weights its components, a strategy that can lower single-stock risk. Familiar names among the fund's top 10 holdings include Citigroup (NYSE:C) and JPMorgan Chase (NYSE:JPM). Both of those banks delivered first-quarter results that beat Wall Street estimates.Citigroup has been buying back its shares at a brisk pace and looking to cut costs -- two strategies that boosted the bank's first-quarter results. Global X MSCI China Financials ETF (CHIX) Expense Ratio: 0.65%Obviously, the Global X MSCI China Financials ETF (NYSEARCA:CHIX) is a play on Chinese banks, making it one of the best ETFs for investors looking to add some international diversification to U.S.-heavy financial services positions. CHIX is also one of this year's best ETFs in the financial services space with a year-to-date gain of just over 20%.China is the world's second-largest economy and stocks there are among this year's emerging markets leaders, explaining why CHIX is one of the best ETFs in the financial services segment. Bank stocks are integral parts of many traditional China funds, indicating that CHIX is a, somewhat overlooked, tell on what to expect from China ETFs over the near- to medium-term.Amid soaring first-quarter loan activity, China's major banks recently reported solid earnings. * 10 A-Rated Stocks the Smart Money Is Piling Into On April 29, "Industrial & Commercial Bank of China Ltd., Bank of China Ltd., China Construction Bank Corp. and Bank of Communications Co. posted higher net income. Including Agricultural Bank of China Ltd., which reported last week, rises at the big five clustered in a range from 4.1 percent to 4.9 percent," reports Bloomberg. iShares U.S. Regional Banks ETF (IAT)Expense Ratio: 0.43%Last year, regional bank stocks and funds sorely disappointed investors as the Federal Reserve boosted interest rates four times. As highlighted by the iShares U.S. Regional Banks ETF (NYSEARCA:IAT), which is up about 20% this year, the regional bank picture is brightening in 2019.The more sanguine interest rate outlook coupled with speculation of increased consolidation is among the factors making regional bank ETFs, such as IAT, some of this year's best ETFs. Currently, BB&T Corp. (NYSE:BBT) and SunTrust (NYSE:STI), IAT's third- and fourth-largest holdings, respectively, are discussing a merger, stoking speculation more regional bank consolidation is on the way.Regional banks are heavily dependent on strength in the broader U.S. economy. Robust economic activity combined with steady or declining interest rates, which can boost demand for mortgage loans, are among the factors investors need to consider with a fund such as IAT. Oppenheimer S&P Financials Revenue ETF (RWW)Expense Ratio: 0.45%Many traditional financial services ETFs, such as the aforementioned XLK, are cap-weighted and there are a few, such as KBE, that are equally weighted. The Oppenheimer S&P Financials Revenue ETF (NYSEARCA:RWW) is one of the best ETFs for investors looking for a different view on the financial services sector. Specifically, this ETF weights its components by revenue.Home to 69 stocks, RWW tracks the S&P 500 Financials Sector Revenue-Weighted Index. This year, it has been hard to argue with RWW's revenue-weighted methodology. The fund is one of the best ETFs in this category with a year-to-date gain of 18.44%."Revenue weighting offers diversified equity market exposure but, by weighting companies based on their revenue, rather than their stock price, it increases the strategy's exposure to attractively valued stocks compared to a market-cap-weighted index," according to Oppenheimer. * 7 Cheap ETFs for Novice Investors Due to the revenue weighting, RWW allocates more than 15% of its weight to one stock: Berkshire Hathaway (NYSE:BRK.B). iShares MSCI Europe Financials ETF (EUFN)Expense Ratio: 0.48%The iShares MSCI Europe Financials ETF (NASDAQ:EUFN) is one of the best ETFs for risk-tolerant investors seeking international financial services exposure. EUFN has been one of the best ETFs for tactical exposure to Europe this year, but it is also one of the most volatile Europe funds. EUFN has a three-year standard deviation of almost 18%, well above the comparable metric on standard developed markets funds.Investors in EUFN are compensated for the fund's volatility and other risks with a trailing 12-month dividend yield of just over 6%, but European bank earnings have not been nearly as good as what has been seen in the U.S. and China and some banks in Europe are not as financially sturdy as their U.S. counterparts."Unfortunately, many of European banks' woes are of their own making," reports Forbes. "A host of regulatory and legal fines and ongoing money laundering investigations of several banks do not bode well for European earnings."Bottom line: EUFN is not for the faint of heart, but it may be one of the best ETFs for bank investors with a big flair for risk.Todd Shriber owns shares of XLF. More From InvestorPlace * 7 A-Rated Stocks That Are Under $10 * 7 Stocks That Are Soaring This Earnings Season * 5 Biotech Stocks for a Long-Lived Portfolio * 10 Times Apple's Hardware Failed Consumers -- And Hurt Its Business Compare Brokers The post 5 Best ETFs to Make Some Bank on Financial Stocks appeared first on InvestorPlace.
A new survey from the Business Roundtable finds that optimism among executives has dropped for the fifth quarter in a row. Yahoo Finance's Jessica Smith and Nationwide Chief Economist, David Berson, join Seana Smith to discuss how trade uncertainty is impacting CEO economic outlook.
President Trump defending his decision to threaten Mexico with tariffs, saying that's what got the deal done. Yahoo Finance's Seana Smith and former trade representative under George H. W. Bush, Carla Hills discuss.
The number of cash machines around the world fell 1% to 3.24 million last year, according to Banking Consultant RBR.Dan Howley, Melody Hahm and Dan Roberts join Seana Smith on ‘The Ticker’ to discuss why cash is on the decline.
Higher education has led to increased student debt, according to the Wall Street Journal, which comes as the Senate Finance Committee heard testimony last week about lowering the retirement savings age to 16-years-old. Yahoo Finance's Zack Guzman and Brian Cheung are joined by Michelle McKinnon, Payne Capital Management Senior Financial Adviser, and Chris Carosa, “From Cradle To Retirement: The Child IRA” author, to discuss.