|Bid||0.00 x 800|
|Ask||0.00 x 800|
|Day's Range||135.77 - 136.53|
|52 Week Range||110.22 - 142.14|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.43%|
Second-quarter earnings arrived for big banks in earnest last Friday amid a spate of reports from the financial services sector. Exchange traded funds tracking financial services stocks were tested last ...
Consensus estimates are pegged at about 57 cents per share, which represents a decrease of a nickel compared to last quarter. If BofA exceeds these estimates, it will be a welcome rebound for all three ETFs after closing in the red during Friday's trading session--IYG was down 0.73%, XLF was down 0.48% and KBWB was down 0.57%. Much of that blame can be directed towards Wells Fargo who posted losses in their second quarter earnings report, sending their shares tumbling 1.20%.
It was more than a case of bad luck on Friday the 13th as Wells Fargo posted second quarter losses, stinging three financial ETFs with the heaviest weighting of Wells Fargo equities–iShares Evolved US ...
Though chances of a broad-based earnings beat are low in Q2 per the ESP trend, the outlook seems bright for financial ETFs, the outlook seems bright for financial ETFs.
Declining Treasury yields are chasing investors from some exchange traded funds tracking financial services stocks, including the iShares U.S. Financial Services ETF (IYG) . The $1.87 billion IYG recently turned 18 years old and tracks the Dow Jones U.S. Financial Services Index. Earlier this year, financials were also propped up by a rise in bond yields as higher interest rates typically widen the margin spread between bank loans and deposits.
A pullback in Treasury yields and the pending results of bank stress tests have weighed on some financial sector investors' minds, triggering large outflows out of bank-related ETFs. The Federal Reserve’s instructions for 2018 Comprehensive Capital Analysis and Review (CCAR) stress tests are being viewed as tougher this year.
Conventional wisdom tells us that a steepening Treasury yield curve should lead to higher profits for bank stocks because their net interest margins — the difference between the amount of interest banks pay for their liabilities (checking and savings deposits, etc.) and the amount of interest banks receive for their assets (personal and commercial loans, etc.) — will be wider. If you look at the graph of the relationship between the yield on the 10-year Treasury and the yield on the 2-year Treasury in Fig. 1, you will see that the spread between these two yields has been getting smaller and smaller (meaning the yield curve has been flattening) during the past few years.
What Was behind Bancorp’s Strong 4Q17 Performance? During 4Q17, Bancorp’s (UBS) loans rose $7.1 billion, a 2.6% increase in comparison to 4Q16. This increase was mainly due to growth in commercial loans of 4%, residential mortgages of 5.2%, retail leasing of 28.9%, and retail loans of 5.2%.
What Was behind Bancorp’s Strong 4Q17 Performance? The tax reform legislation helped Bancorp (USB) post a very positive quarter. $152 million was contributed to the US Bank Foundation and $67 million was distributed as special bonuses to eligible employees.
ADP, a human capital management solution provider, releases a monthly report on US non-farm employment. This monthly report is prepared by using actual anonymous payroll data of 411,000 clients that ADP services. The report is released two days before the non-farm payrolls data, so this report prepares markets for any surprises in the jobs report.
Sector exchange traded funds have become increasingly popular with advisors and investors. While broad market funds such as the SPDR S&P 500 ETF (NYSE: SPY ) give investors the benefit of diversity, sector ...
Of the analysts surveyed by Reuters, ~55% have rated Morgan Stanley (MS) a “buy.” Of the remaining 45%, 11% have given the stock “strong buy” recommendations, and 30% have given it “hold” recommendations. The above graph depicts analysts’ recommendations and mean price targets for MS. A total of 30% of analysts have rated Goldman Sachs (GS) as a “buy,” 33% have rated Citigroup as (C) a “buy,” and 26% have rated JPMorgan Chase (JPM) as a “buy.” MS makes up 2.3% of the iShares U.S. Financial Services ETF (IYG).
President Donald Trump signed a bill to cut corporate tax rates from 35% to 21% last month. Charges taken for tax have created a revenue dent for most banks, including Citigroup (C), Bank of America (BAC), and Goldman Sachs (GS). Morgan Stanley (MS) has reported a one-time net discrete tax provision of $990 million, composed of a ~$1.2 billion tax discrete provision offset by ~$168 million associated with reserves and interest-related tax examinations.
According to the employment report, job growth was robust across all the sectors except for the information (VGT) sector, which saw 4,000 job losses in December and over 50,000 job losses in 2017.