|Bid||0.00 x 312600|
|Ask||25.45 x 321800|
|Day's Range||25.53 - 26.03|
|52 Week Range||22.05 - 30.33|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.10|
|Expense Ratio (net)||0.13%|
Bank of America Posted Strong Fourth-Quarter Results(Continued from Prior Part)Higher target priceBank of America (BAC) impressed investors with its fourth-quarter results. The higher net interest income, loans, and deposits drove the bank’s top
To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a step back and looks at how various asset classes across the globe are performing. The weekly performance is from last Friday’s open to this week’s Thursday close.
The financial sector is having a great start to the New Year, with the Financial Select Sector SPDR Fund (XLF) adding 6.9% so far this month. In addition, the financial sector is achieving this with the sort of healthy breadth it hasn’t seen in more than a year, according to a Thursday note by Bespoke Investment Group.
Shares of Morgan Stanley sank 5.6% in morning trade Thursday, after the bank and broker's fourth-quarter results snapped a 12-quarter streak of earnings beats, to put it on track for the biggest one-day post-earnings selloff since the financial crisis. The last time the stock fell more on the day earnings were reported was when the stock tumbled 9.0% on April 22, 2009, when Morgan Stanley reported results for the first-quarter 2009. The previous biggest decline since then was 5.4% on April 18, 2013 after first-quarter 2013 results. The stock has tumbled 24% over the past 12 months, while the SPDR Financial Select Sector ETF has shed 14% and the S&P 500 has given up 6.7%.
Shares of Morgan Stanley tumbled 5.7% in premarket trade, after the brokerage blamed a "volatile global market environment" for disappointing sales-and-trading results, for its customers and itself. Equity sales and trading revenue was "essentially unchanged" at $1.9 billion, below the FactSet consensus of $2.04 billion, as higher revenue in the financing business was partially offset by lower execution results. For fixed income and trading, revenue dropped 30% to $564 million, well below the FactSet consensus of $800 million. Credit and rates products results were hurt by "significant credit spread widening and volatile rate environments," partially offset by increases in commodities revenue. Investment revenue were negative $52 million, after being a positive $213 million a year ago, primarily because of "market deterioration of a publicly traded investment subject to sale restrictions," which suggests the value of shares it owned of an initial public offering declined before the lockup expired. Morgan Stanley's stock has lost 19.6% over the past 12 months through Wednesday, while the SPDR Financial Select Sector ETF has lost 13.5% and the S&P 500 has shed 6.7%.
Bank of America revealed better-than-expected fourth quarter results on rising interest rates and lower taxes, lifting bank stocks and financial sector-related ETFs. On Wednesday, the Invesco KBW Bank ...
Shares of Morgan Stanley shot up 4.8% in afternoon trade Wednesday, enough to enter bull-market territory, a day before the broker is scheduled to report fourth-quarter results. The rally comes after shares of fellow large-capitalization financial Goldman Sachs Group Inc. soared 9.1% and Bank of America Corp. ran up 7.7% after they reported better-than-expected results. Morgan Stanley's stock is trading 21.5% above its 2-year closing low of $37.01 on Dec. 24; many chart watchers define a bull market as a rally of 20% or more off a bear-market low. Morgan Stanley is scheduled to report fourth-quarter results before Thursday's open. It has beat earnings expectations the past 12 quarters and has beat on revenue the past 10 quarters. Morgan Stanley's stock has slipped 2.3% over the past three months, while the SPDR Financial Select Sector ETF has given up 4.6% and the S&P 500 has shed 6.6%.
The Direxion Daily Financial Bull 3X ETF (NYSEArca: FAS) gained 5.62 percent on Wednesday as banks like Goldman Sachs and Bank of America reported positive earnings in what’s been a sold start to 2019 ...
To receive further updates on this Financial Select Sector SPDR ETF (NYSEARCA:XLF) trade as well as an alert when it's time to take profits, sign up for a risk-free trial of Maximum Options today. This morning I am recommending a bearish trade on the Financial Select Sector SPDR ETF (NYSEARCA:XLF). This ETF's holdings are made up of many different financial stocks, including big banks like JP Morgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC) and Citigroup , Inc. (NYSE:C). With earnings season approaching, financial stocks are in a tough position, and XLF may struggle as a result. InvestorPlace - Stock Market News, Stock Advice & Trading Tips ### Holding Big and Small Banks XLF's top holdings are large banks like those listed above, and so far their earnings reports are mixed. On Monday, C reported that it beat earnings per share (EPS) expectations by $0.06 (or $0.09 when accounting for the impact of the 2017 tax reform), but it missed its revenue target by over a quarter of a billion dollars. Still, C was able to rally on this news. WFC was in a similar situation, beating EPS estimates and falling short on revenue. WFC shares fell nearly 3% yesterday, partially because the Federal Reserve will restrict WFC's growth longer than expected. The Federal Reserve imposed these regulations after a series of consumer abuses, and it rejected WFC's recent prevention plan. JPM missed both earnings and revenue, but rallied anyways. These big banks might be able to rally through mixed or even negative earnings reports, but XLF also holds smaller, regional banks like BB&T Corporation (NYSE:BBT), M&T Bank Corp (NYSE:MTB) and Zions Bancorporation N.A. (NASDAQ:ZION). These smaller banks won't be as resilient to negative earnings, and they start reporting later this week. If enough smaller banks start reporting mixed or negative numbers, XLF could fall. ### Two Layers of Resistance Looking at the chart of XLF, we can see a few areas of potential resistance. It formed support just above the $25 level in October of 2018. Regular readers know, old support can act as new resistance, and even if XLF makes it past $25, it will still have to cross the $26 level, which acted as support throughout November and December. Daily Chart of Financial Select Sector SPDR ETF (XLF) -- Chart Source: TradingView XLF's performance depends on both big and small banks, and it won't overcome resistance without some positive earnings numbers from across its many holdings. For that reason, I am recommending a bearish trade this morning. Using a spread order, buy to open the XLF March 15th $24 put and sell to open the XLF March 15th $22 put for a net debit of about $0.50. A debit spread is simply a way to lower the cost of buying options, as the option that you sell to open (short) helps offset the cost of the option that you buy to open. Therefore, this put debit spread is a way to lower the cost of buying bearish put options. Many brokers will require the use of margin and/or a set amount of reserved capital to execute a debit spread; contact your broker directly for specific requirements. Follow our Facebook page to receive each Trade of the Day direct to your News Feed -- and join the conversation. InvestorPlace advisor Ken Trester brings you Power Options Weekly, which delivers 5 new options trades and his latest trading advice to you each Friday. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990. Compare Brokers The post Big Banks Might be Resilient, But XLF is Still Vulnerable to Negative Earnings appeared first on InvestorPlace.
Shares of Bank of America Corp. shot up 4.6% toward a 6-week high in premarket trade Wednesday, after the company beat earnings expectations and also snapped a streak of major banks missing revenue expectations. BofA reported fourth-quarter total revenue that rose to $22.74 billion from $20.44 billion, above the FactSet consensus of $22.35 billion. Earlier this week, Citigroup Inc. , J.P. Morgan Chase & Co. and Wells Fargo & Co. all missed revenue expectations, with J.P. Morgan going as far tobreak a streak of 12-straight beats. For BofA, net interest income rose to $12.30 billion from $11.46 billion, topping the FactSet consensus of $12.20 billion, while noninterest income grew to $10.43 billion from $8.97 billion to beat expectations of $10.12 billion. For revenue, growth in consumer banking, global wealth and investment management and global banking offset a decline in global markets. The stock has lost 6.9% ove the past three months through Tuesday, while the SPDR Financial Select Sector ETF has shed 7.0% and the Dow Jones Industrial Average has declined 6.7%.
Wednesday will be another big earnings day for some of the largest U.S. banks as Goldman Sachs and Bank of America report.
Fourth-quarter earnings season commences in earnest this week. As is the case during every earnings season, the financial services sector, the third-largest sector weight in the S&P 500, gets the earnings ball rolling. This week alone, more than 31% of the members of the Russell 1000 Financial Services Index step into the earnings confessional. Over the following three weeks, 43.76% of that benchmark's member firms deliver fourth-quarter results. On Monday, Citigroup Inc. (NYSE:C) kicked off this week's parade of bank earnings, reporting a fourth-quarter profit of $4.2 billion, or $1.61 a share, up from $3.7 billion, or $1.28 a share, a year earlier. Analysts expected New York-based Citi to earn $1.55 per share. InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Jan 7, FactSet wrote: "They S&P 500 is expected to report earnings growth of 11.4% for the fourth quarter. What is the likelihood the index will report an actual earnings increase of 11.4% for the quarter? Based on the average change in earnings growth due to companies reporting positive earnings surprises, it is likely the index will report earnings growth above 15% for Q4, but below the 25% growth reported in the previous three quarters." * 8 Dividend Stocks With Growth on the Horizon With a slew of marquee banks reporting earnings this week, some of the following related bank ETFs could be worth monitoring, particularly because expectations for the sector are low heading into this earnings season. ### Financial Select Sector SDPR (XLF) Source: Shutterstock Expense ratio: 0.13% per year, or $13 on a $10,000 investment. The Financial Select Sector SDPR (NYSEARCA:XLF) is not a dedicated bank ETF, but it is the largest financial services ETF on the market and it does allocate over 43% of its weight to bank stocks, more than double its second-largest sector weight. Coming off a 13% loss last year, XLF could use the assistance of some better-than-expected earnings reports to see its near-term fortunes boosted. There are immediate catalysts with the potential to determine this sector ETF's near-term performance. JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo Co. (NYSE:WFC), which combine for 16.49% of this bank ETF's weight, report earnings this week. This bank ETF has work to do to recapture investors' confidence. As XLF slumped last year even amid four interest rate hikes by the Federal Reserve, investors yanked $5.35 billion from the fund, a total exceeded by just four other ETFs. Investors remain leery of this bank ETF as highlighted by outflows from XLF of more than $794 million last week. ### SPDR S&P Bank ETF (KBE) Source: Shutterstock Expense ratio: 0.35% per year, or $35 on a $10,000 investment. As its name implies, the SPDR S&P Bank ETF (NYSEARCA:KBE) is a dedicated bank ETF, putting it front and center among the primary options to consider amid this week's onslaught of bank ETFs. The $2.72 billion KBE tracks the S&P Banks Select Industry Index and holds 85 bank stocks across all three market capitalization segments (large, mid and small). This bank ETF's holdings have a weighted average market value of $22.92 billion, indicating it tilts toward larger bank stocks. * 5 Fallen-Angel Stocks That Have Been Oversold KBE is an equal-weight ETF and none of its components command weights of more than 1.73%, indicating single stock risk is minimal with this bank ETF. That also means KBE needs the assistance of a lot of strong reports to deliver earnings season upside. ### Invesco KBW Bank ETF (KBWB) Source: Shutterstock Expense ratio: 0.35% per year, or $35 on a $10,000 investment. The Invesco KBW Bank ETF (NASDAQ:KBWB) is another dedicated bank ETF, but it features significant differences relative to the aforementioned KBE. KBWB tracks the widely followed KBW Nasdaq Bank Index and is a cap-weighted fund. KBWB holds just 24 stocks and is dominated by the largest U.S. banks. That means this bank ETF is bound to be tested this week. Bank of America Corp. (NYSE:BAC), JPMorgan Chase and Wells Fargo combine for about 24% of KBWB's weight. As is the case with other bank ETFs, KBWB leans heavily toward the value factor because financial services stocks have been widely regarded as value plays for over a year. Over 78% of KBWB's holdings are considered large- and mid-cap value plays. ### iShares U.S. Financials ETF (IYF) Source: Ken Teegardin via Flickr Expense ratio: 0,43% per year, or $43 on a $10,000 investment. The $1.69 billion iShares U.S. Financial Services ETF (NYSEARCA:IYF) tracks the Dow Jones U.S. Financials Index and has a deeper bench than some rival bank ETFs as highlighted by a roster of 285 stocks. Like the aforementioned XLF, IYF is more of a diversified financial services ETF. That said, IYF allocates 29.58% of its weight to bank stocks, making that the fund's largest industry weight. Five of IYF's top 10 holdings are bank stocks and all five of those names deliver fourth-quarter results this week. Many of the same stocks that dominate XLF and KBWB are important to IYF's performance as well. "Analysts are expecting a decent set of numbers, given an economy that seems in good shape based on holiday retail sales and employment numbers, subdued inflation and a more dovish Federal Reserve," reports MarketWatch. * 8 Dividend Stocks With Growth on the Horizon IYF is up 3.73% to start 2019. ### Invesco S&P 500 Equal Weight Financials ETF (RYF) Source: Shutterstock Expense ratio: 0.40% per year, or $40 on a $10,000 investment. The Invesco S&P 500 Equal Weight Financials ETF (NYSEARCA:RYF) can be seen as an equal-weight alternative to XLF, meaning no single stock charts the course for this bank ETF. RYF actually features lower bank exposure than XLF as insurance providers and capital markets are larger industry weights in the equal-weight fund than traditional banks. Still, RYF has potency as a bank earnings season play. While it may be in the spotlight this week on par with KBWB or XLF, the equal-weight bank ETF could be worth considering in the latter stages of bank earnings season (next week and into early February). RYF is another example of a bank ETF with value tendencies. Approximately 60% of the fund's 68 holdings are classified as value stocks. Todd Shriber owns shares of XLF. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies That Could Post Decelerating Profits * 10 A-Rated Stocks the Smart Money Is Piling Into * Mizuho: 7 Long-Term Value Stocks to Buy Now Compare Brokers The post 5 Best Bank ETFs for This Week's Earnings Avalanche appeared first on InvestorPlace.
Wells Fargo & Co.'s fourth-quarter profit beat, while revenue missed, appears to have been aided by the bank spending over $7 billion on share buybacks during the fourth quarter. Wells reported a net income decline, to $6.064 billion from $6.151 billion a year, but earnings per share increased to $1.21 from $1.16, as common shares outstanding declined 6.3% to 4.581 billion shares from 4.892 billion shares. The FactSet EPS consensus was for an increase to $1.19 from $1.16 a year ago. Wells said it bought back 142.7 million shares during the fourth quarter, which net of issuances, lowered shares outstanding by about 130.2 million. Wells said it spend $7.30 billion on share repurchases during the fourth quarter, implying an average buyback-price of $51.15. For 2018, Wells said it spent $20.63 billion on stock buybacks.
Financial stocks were broadly lower, as two of the sector's top-5 components reported disappointing fourth-quarter results. The SPDR Financial Select Sector ETF shed 0.8% in premarket trade Tuesday, putting it on track to snap a 7-session win streak. Shares of J.P. Morgan Chase & Co. , the second most heavily weighted XLF component as of Monday's close, dropped 2.7% after the banking giant missed fourth-quarter profit and revenue expectations. Shares of Wells Fargo & Co. , the fourth most heavily weighted component, slipped 0.6%, after the bank beat profit expectations but missed on revenue. Among the other top components, shares of Berkshire Hathaway Inc. eased 0.2%, Bank of America Corp. slid 0.8% and Citigroup Inc. gave up 0.2%. The XLF has lost 6.2% over the past three months through Monday, while the S&P 500 has declined 6.1%.
Investing.com - JPMorgan rebounded from early weakness Tuesday to push financials higher, even as the bank reported weaker-than-expected fourth-quarter earnings.
J.P. Morgan Chase & Co. missed fourth-quarter total revenue expectations for the first time in over three years, amid sharp declines in the banking giant's markets and investor services businesses, including fixed income and equity trading. Fixed income markets revenue tumbled 35% to $1.86 billion and equity markets revenue dropped 17% to $1.32 billion, to push total markets and investor services revenue down 29% to $3.96 billion. While total banking revenue, which includes investment banking, Treasury services and lending, rose 1% to $3.28 billion, overall corporate and investment bank (C&IB) revenue dropped 18% to $7.24 billion, missing the FactSet consensus of $8.02 billion. Also within C&IB, investment banking fees edged up to $1.81 billion from $1.80 billion, while principal transactions tumbled 52% to $1.49 billion from $1.77 billion. Total revenue for the bank fell 4% to $26.11 billion, below the FactSet consensus of $26.84 billion, to mark the first miss since the third quarter of 2015. J.P. Morgan's stock fell 2.8% in premarket trade, while futures for the Dow Jones Industrial Average rose 3 points.
Shares of J.P. Morgan Chase & Co. sank 1.7% in premarket trade Tuesday, after the banking giant reported fourth-quarter profit and revenue that rose less than expected. Net income increased to $7.07 billion, or $1.98 a share, from $4.23 billion, or $1.07 a share, in the same period a year ago. The FactSet consensus for earnings per share was $2.20. Revenue rose to $26.80 billion from $25.75 billion, but was below the FactSet consensus of $26.84 billion, as the corporate and investment bank and asset and wealth management businesses missed expectations, while consumer and community banking and commercial banking revenue topped. Book value per share rose 5% to $70.35, while tangible book value per share increased 5% to $56.33. The stock has lost 5.1% over the past three months while the Dow Jones Industrial Average has slipped 5.3%.
The Zacks Analyst Blog Highlights: Energy Select Sector SPDR, iShares U.S. Home Construction, iShares Dow Jones Transportation and Financial Select Sector
Investing.com – Citigroup (NYSE:C) soared on Monday, driving broader gains in financial stocks, even though its fourth-quarter results were a mixed bag: its earnings beat forecasts while revenue missed.
Shares of Citigroup Inc. dropped 1.2% in premarket trade Monday, after the bank beat fourth-quarter profit expectations but missed on revenue, as the consumer banking and institutional client group businesses both posted surprise declines. Net income was $4.31 billion, or $1.64 a share, after a loss of $18.89 billion, or $7.38 a share, in the same period a year ago, which included a $22.6 billion one-time charge related to tax cuts. Excluding non-recurring items, adjusted earnings per share for the latest quarter came to $1.61, above the FactSet consensus of $1.55. Total revenue fell 2% to $17.12 billion from $17.50 billion, below the FactSet consensus of $17.50 billion. Global consumer banking revenue slipped to $8.44 billion from $8.45 billion, while the FactSet consensus was for a rise to $8.64 billion, as a 9% decline in retail banking revenue offset a 2% rise in the cards business. For institutional clients group, revenue fell 1% to $8.21 billion from $8.30 billion, while the FactSet consensus was for a rise to $8.48 billion, as fixed income revenue fell 21%, equity markets revenue rose 18% and total banking revenue grew 3%. "A volatile fourth quarter impacted some of our market sensitive businesses, particularly fixed income," said Chief Executive Michael Corbat. The stock has tumbled 18.8% over the past three months through Friday, while the SPDR Financial Select Sector ETF has shed 7.3% and the S&P 500 has lost 6.2%.
Earnings beat prospect in Q4 for banks may be bleak, but a steepening yield curve and cheaper valuation could boost bank ETFs in the near term.
Shares of Citigroup Inc. jumped 1% in premarket trade, after the bank said it has formalized an information sharing and engagement agreement with activist investor ValueAct Capital. Citi said the agreement gives ValueAct access to confidential information and provides opportunities to discuss strategy, governance and operational planning with Citi's management team and board of directors. ValueAct said it currently owns 32 million common shares of Citi, or about 1.3% of the shares outstanding, which would make it the 6th-largest shareholder, according to FactSet. Because a ValueAct representative sits on the board of Alliance Data Systems Corp. , which competes with Citi in certain businesses, ValueAct is not pursuing a seat on Citi's board. Citi's stock has tumbled 25.3% over the past 12 months, while the SPDR Financial Select Sector ETF has lost 15.6% and the Dow Jones Industrial Average has slipped 6.2%.
The slow down in global growth, trade wars and US government shutdown could all be catalysts for a recession - and still the US economy remains strong. Yahoo Finance Julie Hyman, Adam Shapiro, Brian Cheung, and Oliver Pursche Chief Market Strategist, Bruderman Asset Management discuss.