XLF - Financial Select Sector SPDR Fund

NYSEArca - Nasdaq Real Time Price. Currency in USD
+0.46 (+1.76%)
At close: 4:00PM EDT
Stock chart is not supported by your current browser
Previous Close26.11
Bid26.52 x 900
Ask25.97 x 1300
Day's Range26.24 - 26.64
52 Week Range22.05 - 29.07
Avg. Volume46,922,667
Net Assets25.24B
PE Ratio (TTM)N/A
YTD Return10.30%
Beta (3Y Monthly)1.10
Expense Ratio (net)0.13%
Inception Date1998-12-16
Trade prices are not sourced from all markets
  • Stock buyback activity 'likely tripled' during the market pullback: Kolanovic
    Yahoo Finance Video

    Stock buyback activity 'likely tripled' during the market pullback: Kolanovic

    J.P. Morgan’s quant strategist Marko Kolanovic is eyeing a key silver lining in this past week of stock market volatility that few are talking about: stock buybacks. Scott Gamm explains.

  • Goldman Sachs sees 80% chance of another cut at some point in 2019
    Yahoo Finance Video

    Goldman Sachs sees 80% chance of another cut at some point in 2019

    Goldman Sachs analysts think there's an 80% cumulative probability of another cut at some point this year. While they expect this to happen at the September meeting, they continue to see little need for it. Jen Rogers and Brian Cheung react.

  • Fed cuts rates for first time since 2008
    Yahoo Finance Video

    Fed cuts rates for first time since 2008

    The Federal Reserve cut interest rates by 25 basis points in its policy-setting meeting on July 31, marking the first time the central bank has reduced the benchmark interest rate since it battled the financial crisis in 2008. The Fed also decided to pre-emptively end its process of shrinking its balance sheet, a process known as quantitative tightening, two months ahead of schedule. Yahoo Finance's Editor-in-Chief, Andy Serwer, Jen Rogers, Adam Shapiro and UBS U.S. Economist Rob Martin react to the Fed's decision on The Final Round.

  • Market strategist says smart people will be watching these factors after the Fed's cut
    Yahoo Finance Video

    Market strategist says smart people will be watching these factors after the Fed's cut

    Robert W. Baird & Co. Managing Director and Market Strategist Mike Antonelli joins Yahoo Finance’s Julie Hyman, Adam Shapiro, Brian Cheung, and Cornell Capital Partner Ann Berry to discuss what's next for the Fed.

  • JP Morgan analyst reveals ‘once in a decade’ opportunity in stocks
    Yahoo Finance Video

    JP Morgan analyst reveals ‘once in a decade’ opportunity in stocks

    There's a rare opportunity in the stock market right now, according to one JP Morgan quantitative analyst. Yahoo Finance's Seana Smith and SALT Financial President Alfred Eskandar.

  • How consumer confidence will 'continue to climb' with China trade deal and Fed rate cut
    Yahoo Finance Video

    How consumer confidence will 'continue to climb' with China trade deal and Fed rate cut

    U.S. retail sales beat expectations in June, climbing 0.4% last month. Jimmy Lee, CEO of The Wealth Consulting Group, joins Seana Smith on 'The Ticker' to discuss.

  • Bank Options Pop as Financial Shares Slump
    Schaeffer's Investment Research

    Bank Options Pop as Financial Shares Slump

    The banking sector is taking a hit after this morning's yield curve inversion

  • Stock market news: August 14, 2019
    Yahoo Finance

    Stock market news: August 14, 2019

    Stocks posted their worst session of 2019 Wednesday after the bond market flashed its brightest warning signal yet presaging a potential recession.

  • How to Short Financial Sector With ETFs

    How to Short Financial Sector With ETFs

    Given the massive outflow and the bearish outlook, the appeal for financial ETFs, especially banks, has dulled. As a result, investors who are bearish on the sector right now may want to consider a near-term short.

  • Benzinga

    A Curious Trend With Bank ETFs

    The Financial Select Sector SPDR Fund (NYSE: XLF ), the largest exchange-traded fund tracking stocks in the S&P 500's third-largest sector, lost 1.56% last week. With interest rates declining, some market ...

  • MarketWatch

    Financial stocks set for broad selloff

    Financial stocks were set up for a broad selloff Monday, weighed down by the continued drop in Treasury yields. The SPDR Financial Select Sector ETF shed 1.1% in premarket trading. Among the financial ETF's (XLF) more-active components before the open, shares of Bank of America Corp. dropped 1.6%, Citigroup Inc. slid 1.5%, J.P. Morgan Chase & Co. slid 1.6%, Wells Fargo & Co. gave up 1.3% and Goldman Sachs Group Inc. fell 1.6%. The yield on the 10-year Treasury note dropped 4.1 basis points to 1.690%, as growing concerns of increasing trade tensions drove demand for safe-haven assets. Lower long-term yields can hurt bank profits, as it narrows the spread between what banks earn on longer-term assets, like loans, and costs of shorter-term liabilities. the 10-year yield has declined 28.7 basis points so far this month, through Friday. The XLF has lost 1.1% over the past three months, while the S&P 500 has gained 1.3%.

  • ETF Trends

    Why Financial ETFs Are Healthier Than Recent Action Suggests

    The Financial Select Sector SPDR (NYSEArca: XLF), the largest financial services ETF, is lower by more than 5% this week. That’s ugly price action to be sure, but it may also belie significant opportunity ...

  • 7 SPDR ETFs and What They Tell Us About the Market

    7 SPDR ETFs and What They Tell Us About the Market

    The last time I reviewed the Sector SPDR ETFs, I said that the rally was coming to an end and it certainly looks like it could be. Why did I make this prediction? I'm not psychic, it wasn't a guess, and I really couldn't care less about the Federal Reserve or trade wars. I thought that the rally was ending because various sector SPDR ETFs were running into resistance and the consumer discretionary sector was due for a pullback because Amazon (NASDAQ:AMZN) was overbought.As someone who traded at various hedge funds over the past 20 years, I can tell you with 100% certainty that the vast majority of moves made by the S&P 500 Index SPDR (NYSE:SPY) have nothing to due with what the so-called experts in the financial media are attributing to.In financial markets, there are certain price levels that are more important than others with regards to the amount of supply and demand that exists at them. In addition, prices are always doing one of 3 things. Going up, going down, or staying the same.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMost moves in the SPYs are caused by the reaction the underlying sectors that make up the S&P 500 make when they get to these levels or the trend changes. For example, if a sector gets to important support while being oversold, it tends to rebound. If it is not oversold, it tends to consolidate and break the level. It has nothing to do with what Jim Cramer is screaming about or what the analysts are saying. * 10 Cyclical Stocks to Buy (or Sell) Now If you want to get insight into the S&P 500 or SPY, you should look at how the various acting. For example, technology led most of the recent rally -- until the end when the consumer discretionary became more important. Different things drive and influence the market at different times.Let's look at some of the sectors to gain some insight into the future direction of the SPY. Financial Sector SPDR (XLF)The Financial Sector SPDR (NYSEARCA:XLF) has broken support at the important $28 level. This level is important because it was support through all of July, after being a resistance level in May.This will probably be the most important sector to watch over the next week or so. If the XLF fail to rebound back above this level it will be a signal that the SPY are going to trend lower.If the XLF continue to head lower, there may be some support around the $26 level. This is because this is where the lows were at the very end of May. Consumer Discretionary Sector SPDR (XLY)The Consumer Discretionary Sector SPDR (NYSEARCA:XLY) has also broken important support. The $121 level was resistance in April and June.One of the things that led the recent rally was the buying of AMZN stock. Amazon is about 20% of this sector, and as I mentioned last time, AMZN stock was the most overbought that it had been in two years. This brought sellers into the market and this made the stock, and the XLYs, go lower. * 10 Stocks to Buy on the Trade War Dip The dynamic here is similar to that of the XLF. If the XLY does not quickly rebound back over the $121 level, it will be another signal that the SPY is going to trend lower. Technology Sector SPDRs (XLK)The Technology Sector SPDR (NYSEARCA:XLK) has also broken its uptrend. If it continues to sell off, there will probably be some short-term support around $79. This is because this level was resistance in April and June. If it breaks, the broader markets will drop because the tech sector is the biggest part of the S&P 500.How does a resistance level become a support level? The investors who sold their stock at $79 thought they made the correct decision to sell when it traded lower. The short-sellers were looking at a profit.Then when it rallied through the $79 level, the sellers think they have made a mistake and decide to buy XLK if it gets back to $79. The short-sellers tell themselves that if they can cover and break even, they will. Those who bought it at $79 believe they made a good decision and tell themselves that they will add to their positions at $79 if they can.Added to this are the professional traders seeking to profit off of a clear level you can see that there are four groups who want to buy XLK at $79. This demand creates a support level. Healthcare Sector SPDR (XLV)The Healthcare Sector SPDR (NYSEARCA:XLV) has been trending lower over the past month. There will probably be some support around the $90 level because it was resistance in May. * 8 of the Most Shorted Stocks in the Markets Right Now If the XLV finds support around $90 and breaks the downtrend, it could stabilize the SPY. The reaction that the XLV makes if and when it gets to $90 will be important to consider. Energy Sector SPDRs (XLE)The Energy Sector SPDR (NYSEARCA:XLE) continues to trend lower.The XLE started its downtrend last month when it failed at resistance around the $64.50 level. This level was resistance in May, and then again in July.A break of the downtrend line here could be a signal that the selloff that has occurred in the SPY may be coming to an end. Industrial Sector SPDR (XLI) The Industrial Sector SPDR (NYSEARCA:XLI) failed at the resistance at the $78.50 level.You don't need to be a market guru or a master trader to see that this level is important. It was resistance at the end of April and in early May. The XLI has also broken its recent uptrend that began in June. Obviously drawing trendlines is an art and not a science, but if you understand what they illustrate you can profit. * 10 Generation Z Stocks to Buy Long When markets are going up, the forces of demand are in control, and when they are trending lower the forces of supply are in control. If they are consolidating or trading sideways, the forces are equal. The breaking of a trendline means that the leadership may be about to change or equalize. The break of the uptrend line here could be an early indication a downtrend is beginning. S&P 500 SPDR (SPY)The S&P 500 SPDR ETF is testing important support. These are some dynamics to consider to gain insight into whether or not this important level will break or hold. Probably the most important thing to watch is how the XLF reacts to the $28 level. If they do not rebound over the next few days, it will be very bearish for the SPY.It is also important thing is how the XLY reacts to the $121 level. If it does not rebound over the next few days and this level becomes resistance, this could also be very bearish for the SPY.The way the XLK reacts to the $79 support level is important as well. If this level breaks, watch out below.I will also be watching to see if the trends in the XLV and XLE continue. A break of these downtrend lines would be bullish for the SPYs.Most of the dynamics that I see are bearish and I do expect the market to start trending lower. Every time the market sells off after a rally, it seems like people forget that markets go down as well as up.Considering the gains that the market has made since early June some profit taking would not be surprising.As of this writing, Mark Putrino did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy on the Trade War Dip * The 5 Highest-Rated Dow Stocks Right Now * 4 Cybersecurity Stocks to Buy for Long-Term Gains The post 7 SPDR ETFs and What They Tell Us About the Market appeared first on InvestorPlace.

  • GuruFocus.com

    Ami Investment Management Inc Buys Financial Select Sector SPDR Fund, JPMorgan Alerian MLP ...

    Kendallville, IN, based Investment company Ami Investment Management Inc (Current Portfolio) buys Financial Select Sector SPDR Fund, JPMorgan Alerian MLP Index ETN, sells WR Berkley Corp during the 3-months ended 2019Q2, according to the most recent filings of the investment company, Ami Investment Management Inc. Continue reading...

  • ETF Trends

    A Sector ETF With Surprise Rate-Cut Upside Potential

    Conventional wisdom dictating that financial services stocks and exchange traded funds benefit from higher interest rates and are vulnerable to the Federal Reserve lowering borrowing costs may be waning. ...

  • Benzinga

    Dan Deming's XLF Options Trade

    Dan Deming of KKM Financial spoke on "Bloomberg Markets" about his options trading idea in Financial Select Sector SPDR Fund (NYSE: XLF ). The stock managed to break above $28.50, which has been ...

  • A Winning Plan for the Consumer Market Is Driving Goldman Sachs Stock

    A Winning Plan for the Consumer Market Is Driving Goldman Sachs Stock

    Flying under most investors' radars, Goldman Sachs Group (NYSE:GS) has been quietly making new highs, and it doesn't look like Goldman Sachs stock has any intention of stopping.Source: Shutterstock While financials have not exactly been the apple of the market's eye given the Federal Reserve's dovish stance, it is worth noting that the Financial Select Sector SPDR Fund (NYSEARCA:XLF) is actually outperforming the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) year to date.Big banks and regional banks have been delivering very solid earnings. With these strong results, management has overwhelmingly been shareholder-friendly, buying back shares and consistently increasing dividends.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGoldman Sachs stock is no exception with a second-quarter earnings beat ($5.81 per share vs. $4.89 per share) and a significant raise in its quarterly dividend for the third quarter.In fact, on a purely capital gains basis, Goldman Sachs stock is outperforming the more diversified big banks like Bank of America Corp (NYSE:BAC), which I am bullish on after it recently delivered its best quarter in company history, and my longtime favorite JPMorgan Chase & Co. (NYSE:JPM) * 7 Stocks to Sell This Summer Earnings Season Goldman Sachs and a Banner Q2Goldman made no secret that it holds the top spot in global announced and completed mergers and acquisitions. The investment bank has traditionally been Goldman's bread and butter. However, with a difficult sales and trading environment, which many blame on the persistently low volatility, it's extremely important that the advisory and issuance business at least treads water.Goldman Sachs has already had to shrink its sales and trading department, so the second quarter beat in equities was a welcome note for investors. Equities net revenues exceed $2 billion, the second-highest quarterly performance in four years, and the Company also took the top spot here in year-to-date worldwide equity and equity-related offerings and common stock offerings.What is clear though is that GS stock has been rising due to the pivot toward the consumer business. That is simply where the growth is.Net revenues in Investing & Lending grew 16 percent year-over-year and 38 percent sequentially over the first quarter of the year. Most of that was due to gains in public equity investments and to a lesser extent from gains in the bond market, but those are big growth numbers for any department in an establish bank. Goldman Sachs Stock and the Retail MarketEven though Goldman's investment banking and equities business has recovered, David M. Solomon, Chairman and CEO of Goldman Sachs, has clearly re-positioned GS toward a more mainstream brand. This will be the long-term direction of the franchise.It's a departure from the old Goldman ethos, but there's no denying the strength of the U.S. consumer, which has been fueling strong results for its more traditional competitors in the space.One of their biggest investments has been Marcus, a consumer finance business that Goldman has been building for the last three years. It's currently still a drag on earnings, but they have made good progress with $48 billion in deposits and $5 billion in loans written as of this month.The strategic shift is working.The market has rewarded shareholders as GS stock has continued to climb throughout the year. With more consumer initiatives like the much-touted partnership with Apple credit card ahead, Goldman Sachs stock should again deliver strong earnings in the third quarter.As of this writing, Luce Emerson was long JPMorgan stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 5G Stocks to Connect Your Portfolio To * 7 Stocks to Sell This Summer Earnings Season * 6 Upcoming IPOs for July The post A Winning Plan for the Consumer Market Is Driving Goldman Sachs Stock appeared first on InvestorPlace.

  • Lately everyone's buying stocks
    Yahoo Finance

    Lately everyone's buying stocks

    The ‘buy the dip’ theme appears to be in full swing, as Bank of America Merrill Lynch clients took advantage of last week's stock market decline.

  • Financial ETFs Caught Between Solid Earnings & Falling Yields

    Financial ETFs Caught Between Solid Earnings & Falling Yields

    Though Q2 banking earnings are upbeat so far, a slump in long-term bond yields kept financial ETFs in check.

  • 3 Bank Stocks to Buy After Earnings Headlines

    3 Bank Stocks to Buy After Earnings Headlines

    This week marked the start of the bank earnings season. Coming into it, I favored owning three bank stocks: JP Morgan (NYSE:JPM), Bank of America (NYSE:BAC) and Square (NYSE:SQ).The reactions to JPM and BAC earnings were tentative. So the opportunities there remain intact. The third hasn't yet reported, so the SQ stock price continues to hold its own for the bulls.So in light of the recent reports, are they still good to buy at these levels? The short answer is, yes.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo, today, I reiterate the reasons why and I also add Citigroup (NYSE:C) to the list of banks to own for the long term.The first few days of the earnings season are muted and did not yet erase the predominant idea that bank stocks are boring and cannot rally. So the investment in them now should continue to be under the assumption that it's for the long term. So What About Their Environment?Contrary to popular belief, banks stocks do perform in lockstep with the general equity markets. Year-to-date JPM and BAC are up just as much as the S&P 500 and Citigroup stock is up double that.In addition, since all of them passed their stress test, they are all committed to defending their own stock prices with financial engineering.They will increase dividends and buy back their own shares so the efforts from the sellers will have to go against a tremendous headwind of cash flow from the banks themselves.The U.S. Federal reserve and other central banks have wreaked havoc with banks' ability to conduct business. They keep manipulating the interest rates and this creates tremendous confusion, especially on Wall Street.Most investors believe that banks need higher rates to profit, but that is not true. Money center banks need a wide spread between short- and long-term rates to profit.So the recent commitment from the Federal reserve to lower short-term rates should invite more lending activity and at a wide spread. Banks borrow short term to lend us long term. So I am not worried about their business models this year. * 10 Best Cryptocurrencies to Keep on Your Radar With that in mind, let's dive a bit deeper into what makes these three stocks to buy. JP Morgan Chase (JPM)Source: Shutterstock Perception on Wall Street is that JPM is the best of the best. Fundamentally it's cheap as it sells at a price-to-earnings ratio of 12x. The book value fluctuates from 1.2 to 1.6, so it's not likely to be a financial debacle to own it here. In addition, JP Morgan stock pays a respectable 2.8% dividend.The management team is a proven winner. They survived the worst financial crisis of the modern era, so they've seen a few hard days. The regulations that followed the 2008 financial crisis made it so that their balance sheets are bullet proof. Recently, JP Morgan recommitted to more capital return via buybacks and dividends.In addition to the value below, JPM stock is trading inside a tight range. It has support at $112 and $110 per share and a neckline at $116.5, above. Technically, this makes for a breakout opportunity since the bulls have been setting an ascending trend of higher lows while knocking at a resistance zone. If they can break through the resistance zone above, then they can overshoot higher and mount a $9 rally.I would own the shares here for this short-term opportunity and/or for the long-term equity investment. Either way, I think JPM stock is a winner.For those who like to trade options there is also the possibility to sell put spreads at the support levels for August and/or buy calls just above the current price. The combination would be cost neutral thereby offering an opportunity to profit with no out-of-pocket expense.The JPM earnings report did not add any new worries so the ongoing fundamentals still favor the long-term bullish thesis than the short. Bank of America (BAC)Source: Shutterstock The fundamentals for BAC stock are very similar to those of JP Morgan. The stock on the other hand trades in a much tighter range. Case in point, in the last few weeks, the Bank of America stock price is ping-ponging inside a $1 wide box and this includes the reaction to an earnings event.BAC sells at a 10.8 P/E and 1.1 times sales, so it's even cheaper than JPM stock. Management is also beyond reproach since they not only survived the crisis but also saved a few banks along with it.Since BAC trades in a tight bunch, I prefer to trade it via options. I like to sell puts into dips and what others fear. It's a low-priced ticker, so I don't mind being out of the stock if one of those trades temporarily fails. Over the long term it will work out. This way I generate income without any out-of-pocket expense.For example, if I sold the Jan $25 puts before the earnings they now are almost 20% cheaper to close the position. The stock only moved up 2% in comparison. And in my scenario, I risked no money out of pocket.It is important to note that I don't sell naked puts unless I am willing and able to own the shares.Since BAC stock is now tight, technically it too has an opportunity to breakout. The bulls need to overcome the current resistance level, so they can target $31.2, which was the fail of April 29. * 7 Battery Stocks for High-Powered Gains Here too the Bank of America earnings report did not change the overall bullish thesis on the stock. Citigroup (C)Source: Shutterstock Citigroup's reactions to earnings was negative. Since then, the C stock price has traded inside that earnings day candle. So, technically, I note the edges of it as short-term catalysts. Meaning that any breach of its sides would carry some momentum in that direction.So if the bulls can beat $72, they can target $76 per share. Conversely, if the sellers can break below $70, they can target $68 per share.Either way, it would be an exercise in short-term trading and won't change the long-term bullish thesis on the stock. Citigroup stock, for the long term, remains a "BUY" in my book and the experts on Wall Street agree since it has very few HOLD and almost no SELL ratings.So which one is best?They are all quality stocks to buy, but from a 2019 perspective, C stock has the best score. Logic says to stick with the winner.However, of the three banks today, C is my least personal favorite. This is nothing against its own fundamentals and more so my worry over its exposure to international situations. Specifically the chatter surrounding its exposure to entities like Deutsche Bank (NYSE:DB) for example. I don't have anything concrete, but if there is a rumor, then there must be some truth to it, and I don't want the surprise of finding out one day.In summary, I can confidently state that the major U.S. banks are almost all stocks to own almost at any time, while they carry their current fundamentals. JPM, BAC and C stock have so much value below that they make the bearish scenario seem shallow at its worst.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks Top Investors Are Buying Now * The 10 Best Cryptocurrencies to Keep on Your Radar * 7 Marijuana Penny Stocks That Could Triple (But You Won't Make Money) The post 3 Bank Stocks to Buy After Earnings Headlines appeared first on InvestorPlace.

  • ETF Trends

    Rate Cuts Could Put “FAZ” Inverse ETF in Play Through 2019

    As big banks continue to report their second-quarter earnings this week, some are already expressing concern with respect to the possibility of rate cuts by the Federal Reserve through 2019. In particular, profits could shrink as a result of lower interest rates, which could put the Direxion Daily Financial Bear 3X ETF (FAZ)  in play. FAZ seeks daily investment results that equate to 300% of the inverse (or opposite) of the daily performance of the Russell 1000® Financial Services Index.

  • These 6 SPDR ETFs and Amazon Tell Me the Rally Is Over

    These 6 SPDR ETFs and Amazon Tell Me the Rally Is Over

    Many investors watch the headlines like hawks, but moves in the market aren't as dependent on those as many people think. More often, stock market moves are due either to noise or to how markets react when they reach important levels. And considering those, Amazon (NASDAQ:AMZN) and these six SPDR ETFs are telling me that the rally is over for now.For an example of noise, suppose a person deposits money into a mutual fund at the same time that another person withdraws twice as much. The traders at this mutual fund will now need buy stocks to invest the deposit. At the same time, they will need to sell twice as many shares of the same stocks to raise the funds for the withdrawal. This will cause the prices to go lower. This happens thousands of times across the world every hour of every day. You can understand how it could move the markets.Then there's the reaction the various sectors have when they get to important levels. For example, I think this rally is over for now because most of the economic sectors that make up the S&P 500 are at or just under resistance.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip In addition, the consumer discretionary sector has been one of the leaders of the recent rally and it is losing momentum. AMZN is the largest component of this sector and it is overbought and at resistance.First, we will look at some sectors and you will see what I mean. Then we'll go over levels in Amazon stock. And lastly, we will look at the SPY. Industrial Sector SPDR (XLI)The Industrial Sector SPDR (NYSE:XLI) is testing resistance at the $78.50 level. You don't need to be a Market Guru or a Master Trader to see that this level is important. It was resistance at the end of April and in early May.According to academics and random-walk believers, support and resistance levels shouldn't exist. After all, how can a basket of dozens of stocks have the same exact valuations at two very different points in time?But support and resistance levels obviously exist. You do not need to have a PHD to see them. Financial Sector SPDR (XLF)The Financial Sector SPDR (NYSE:XLF) is testing resistance around the $28 level. This level was resistance in April.During last August and September, the financial sector did not participate in the rally. That was one of the key signals that the market was nearing a major top. * 7 Dependable Dividend Stocks to Buy This shows why it is important to examine the undercurrents in the markets in order to really understand how to profit. Last summer the media was going crazy over the bull market, just like now. There was talk of melt-ups and amazing new records. However, savvy investors saw the underlying weakness in the financials and knew that this was a signal that the rally was about to end. Health Care Sector SPDR (XLV)The Health Care Sector SPDR (NYSE:XLV) has been consolidating around resistance at the $93 level and it may be starting to trend lower. The $93 level was resistance in February as well. One of the main reasons for this is that Johnson and Johnson (NYSE:JNJ) is 10% of this sector and some analysts think the company is facing some significant headwinds.JNJ just reported earnings that were better than analysts expected, and yet the stock price still dropped. This is probably because JNJ is being sued for its role in the opioid crisis, and investors are worried about the outcome. It is also being sued for allegedly selling dangerous talcum power for babies.I am not a lawyer and won't guess what the ultimate outcome of these lawsuits will be. What I do know is that even if JNJ stock is innocent of these accusations, it will still incur significant legal costs and damage to its reputation. Utilities Sector SPDR (XLU)The Utilities Sector SPDR (NYSE:XLU) has been testing resistance around the $28 level over the past month. This sector typically pays higher dividends than most others. Because of this, there has been more interest than usual in this sector due to the action of the yield curve.The yield curve illustrates the yield on bonds of all different durations. The vast majority of the time, the longer the term of the bond, the higher the rate of interest that it will pay. This is simply because the longer the timeframe, the greater the odds are that the bond will default. In order to take on this extra risk, investors need a higher return. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond When the yield curve inverts, it means that shorter-term rates are actually higher than long-term rates. This is typically an indication that traders are bearish on the economy. They do not want to hold short-term bonds. They sell, and this drives down the price and makes the interest rates go up. Then they buy long-term bonds and makes the price rise and the yield fall. Consumer Discretionary Sector SPDR (XLY)The Consumer Discretionary Sector SPDR (NYSE:XLY) has been one of the leaders of the recent rally. However, the sector is now very overbought. The last time it was this overbought was in April, and a large move lower followed. A big part of the reason for this is AMZN stock. Amazon is about 20% of this sector, and it is at resistance.If the XLY heads lower, there will probably be support around the $121 level. This because this level was resistance in April and June.What does the term "overbought" mean? It is a measure of a stock's momentum, looking at where the price is now versus where it was X days ago. When stocks reach extremes of this measurement, traders refer to it as overbought or oversold.For example, according to statistics, 95% of all trading should be within two standard deviations of the average. If a stock is trading more than two standard deviations above or below the average, it would be considered overbought or oversold. It will most likely revert back to its average. Amazon (AMZN)Amazon is overbought and testing resistance. The last two times AMZN stock was this overbought were in September and May. A large selloff followed both times. In addition, it is testing resistance around the $2020 level. There is resistance at this level because it was the top and an all-time high last September. Stocks frequently run into resistance when they get to levels that were prior tops. * 10 Stocks Driving the Market to All-Time Highs (And Why) There is also excessive bullish sentiment on AMZN. Currently, 47 Wall Street firms follow it and every single one has a buy rating on it. Excessive bullish sentiment is actually a bearish indication. This is because if everyone likes the stock, everyone has bought it. Now there are no buyers left and the only way it can do is lower. S&P 500 SPDR (SPY)The S&P 500 SPDR (NYSEARCA:SPY) is also overbought. If it heads lower, there will probably be support around the $294 level because it was a resistance level in April. Why do resistance levels become support levels? Consider the following.After hitting the resistance at $294 the SPY traded lower. Those who sold it are happy that they sold. Those who shorted it have a profit. But then the SPY rallied. Now those who sold it tell themselves that if the SPY comes back to $294, they will buy it back. Those who shorted it are now losing money. They tell themselves they will cover it at $294 and break even.Those who bought it at $294 are happy that it went higher and tell themselves that if the SPDRs come back they will buy more. Add to that the professional traders who see a clear level and want to profit from it, and now we have 4 groups of investors who want to buy the SPYs at $294.As of this writing, Mark Putrino did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post These 6 SPDR ETFs and Amazon Tell Me the Rally Is Over appeared first on InvestorPlace.

  • MarketWatch

    Bank of America plans to boost dividend 20%, increase pace of stock buybacks

    Bank of America Corp. announced Wednesday a plan to return $37 billion to shareholders over the next 12 months, through share repurchases and dividends. As part of that plan, the money-center bank said it plans to increase the quarterly dividend by 20%. Based on Tuesday's stock closing price of $28.99 and the current dividend of 15 cents a share, a 20% increase would imply a quarterly dividend of 18 cents a share, an annual dividend rate of 72 cents a share and a dividend yield of 2.48%. That's above the implied yield for the SPDR Financial Select Sector ETF of 1.95% and for the S&P 500 of 1.93%. The plan also includes more than $30 billion in gross stock buybacks, which represents more than 10.9% of the shares outstanding. That would be an increase from the past 12 months, in which the bank repurchased 7% of its shares outstanding. BofA's stock fell 0.3% in premarket trading, after the bank reported second-quarter earnings that topped expectations but revenue that came up a bit short.

  • MarketWatch

    Bank of America's stock falls after profit beats but revenue comes up a bit short

    Shares of Bank of America Corp. dropped 0.7% in premarket trading Wednesday, after the bank reported a second-quarter profit that beat expectations but revenue that came up a bit short. Net income rose to $7.11 billion, or 74 or cents a share, from $6.47 billion, or 63 cents a share, in the same period a year ago. The FactSet consensus for earnings per share was 71 cents. Total revenue increased 2.4% to $23.08 billion, just below the FactSet consensus of $23.11 billion, while net interest income rose 3.1% to $12.19 billion but missed expectations of $12.36 billion. Consumer banking revenue grew 5.2% to $9.72 billion, while the range of two analysts surveyed by FactSet was $9.61 billion to $9.64 billion. Global markets revenue fell 2.5% to $4.15 billion, as sales and trading revenue declined 6% to $3.2 billion. Elsewhere, global banking revenue declined 0.8% to $4.98 billion and global wealth and investment management revenue increased 3.3% to $4.90 billion. The stock has run up 17.7% year to date through Tuesday, while the SPDR Financial Select Sector ETF has climbed 17.9% and the Dow Jones Industrial Average has hiked up 17.2%.