|Bid||54.02 x 800|
|Ask||54.03 x 1200|
|Day's Range||53.75 - 54.34|
|52 Week Range||43.95 - 66.04|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.31|
|Expense Ratio (net)||0.35%|
Bank stocks perform dismally as a number of issues including an inverted yield curve on increasing fears of economic slowdown and the Federal Reserve's dovish monetary policy shake the markets.
Volatility seized Wall Street following Wednesday's Fed announcement. But it was bank stocks that bore the brunt of the damage, which is unfortunate. Many of these money centers were just starting to emerge from well-established bases that could have supported their next up-leg.So much potential wasted.As expected, the Fed held the target for the benchmark rate steady at 2.25% to 2.50%. Furthermore, Jerome Powell and crew indicated that they wouldn't be raising rates any further for 2019. In fact, the next move could be a rate cut. With rates potentially at their peak for this cycle and future GDP growth projections getting slashed, investors jettisoned financial stocks from their portfolios throughout the afternoon.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe Regional Bank ETF (NYSEARCA:KRE) was hit especially hard, falling 3.4% amid massive distribution. Relative weakness continues this morning with most banks in the red while the rest of the market is ripping. * 5 Stocks To Buy for the Happiest Employees Let's take a closer look at three bank stocks that are suffering. You should avoid two of them while buying the third. Click to Enlarge Source: ThinkorSwim Bank of America (BAC)Yesterday's swoon upended what was otherwise a beautiful breakout in the making for Bank of America (NYSE:BAC) -- and other bank stocks. Here's my technical take. Since gapping higher mid-January on better-than-expected earnings, BAC stock built a clean two-month base. But with the break attempt now rejected, we've returned to the chop zone.Thus far this morning's testing of the range's lower bound is holding, and that's a good thing. Bulls do not want to see a close below $28 support.Until BAC can clear the ceiling at $29.80, it's dead money, so steer clear. Click to Enlarge Source: ThinkorSwim Goldman Sachs (GS)This year's behavior in Goldman Sachs (NYSE:GS) has mirrored that of BAC. I'm tempted to copy/paste my previous commentary. Mid-January earnings gap. Two-month base. Failed breakout. Back to chop. That sums up the price action. Yesterday's drop and this morning's follow-through carried GS stock back below its 50-day moving average. We're in no man's land here. * 10 Stocks on the Rise Heading Into the Second Quarter Until GS can re-establish itself above $200 -- stay away. For you bears on the prowl, there's a decent short trade if Goldman breaks $189 support. Click to Enlarge Source: ThinkorSwim American Express (AXP)While the weakness in most banks stocks is a sign to steer clear, I'm finding the drop a welcome development in the credit card space. American Express (NYSE:AXP) was flying high -- it was extended, in fact -- and due for a retracement. Yesterday's Fed shenanigans gave traders the excuse needed to ring the register. And now, we have an attractive buy-the-dip opportunity on our hands.This morning's gap into the rising 20-day moving average was swiftly bought up, and AXP stock is forming a strong bullish piercing candlestick pattern.Buy the May $110/$115 bull call spread for around $2.40. The risk is limited to $240, and the reward is limited to $260.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post 3 Bank Stocks Whacked Down by the Fed appeared first on InvestorPlace.
Financial stocks and bank sector-related exchange traded funds were among the worst off Wednesday after the Federal Reserve Chairman Jerome Powell downgraded its expectations for U.S. economic growth and ...
Shares of Bank of America, Goldman Sachs, JPMorgan Chase and other big banks are on fire. Here are several surprising reasons why.
The Federal Reserve on Wednesday approved Fifth Third Bancorp's purchase of Chicago-based MB Financial . Fifth Third agreed to buy the bank for $4.7 billion, mostly in stock. When the deal is completed, Fifth Third will become the 21st largest insured depository institution in the United States, the Fed said.
The U.S. economy and markets are providing a collection of tailwinds for specific industries and investments. And it is resulting in a buoyant general stock market that has the S&P 500 Index up 11.25% year-to-date.But rather than just betting on the general stock market, I have a collection of market segments that will help you construct a better overall portfolio for growth and income, all with less risk and better-balanced returns for the year. * 10 Blue-Chip Stocks to Lead the Market Specifically, I'm talking about a few key exchange-traded funds (ETFs) to buy. With that said, let's dive into the best ETFs to buy for specific sectors.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSource: Bloomberg BanksI'll start with one of the most stellar market segments that you've probably been ignoring: regional banks. Mention regional banks and many investors will yawn and look away, but this is not only one of the best performing segments of the stock market, but also one of the cheapest values right now. Here's the lead, the regional bank stocks embodied in the KBW Regional Bank Index as synthetically represented in the SPDR S&P Regional Banking ETF (NYSEARCA:KRE) has generated a YTD return of 20.88%.That's of course more than twice the S&P Index and there is more to come. Banks have been hobbled by legislative and administrative regulation over the past decade following the financial crisis of 2007-2008. The result has been that banking became a treacherous business resulting in the high-cost of loan origination as well as other consumer and business bank products. But last year saw a series of legislative reforms as well as administrative changes to provide relief for banks -- particularly for regional and smaller banks.In addition, with the Federal Reserve Bank's Open Market Committee (FOMC) working to guide interest rates to more normalized levels, banks have begun to have breathing room to better price deposits and loans resulting in higher net interest margins.Then there is the Tax Cuts & Jobs Act of 2017 (TCJA), which has resulted in improving net profitability for domestic banks.The stock market didn't really care until now. But since many of the quality banks in the KRE ETF are still valued at either discounts or smaller premiums of book value than traditionally valued, banks are still very good value.Source: Bloomberg REITsNext up is another market segment that's done better than the S&P 500 for the year while continuing to provide better performance over last year as well. Real estate investment trusts (REITs) continue to benefit from the stronger U.S. economy, which fosters demand for properties and supports rising lease income. The result is that REITs are being recognized for their underlying good assets on top of the higher yields offered. * 10 Monthly Dividend Stocks to Buy to Pay the Bills One of the best REIT ETFs to buy is the Vanguard Real Estate ETF (NYSEARCA:VNQ). This ETF has exposure to some of the best REITs in the U.S. market. The YTD return is running at 11.87%. Moreover, REITs, much like banks noted above are still valued at a lower price-to-book ratio than tradition levels pre-2007. Add in the additional benefit of the TCJA providing individual investors with a 20% deduction of taxable income from REIT dividends and the REIT space looks even more lucrative.Source: Bloomberg Preferred StockSimilar to the other investment segments above, preferred stock is another overlooked sector of the market. Preferred stock provides a bond-like investment with higher established dividend yields that can be depended upon for income in any portfolio. And they also provide a good backstop for portfolios when, not just if, the general common stock market takes a pause or worse.Preferred stocks are faring well so far this year. And one of the easiest means for "synthetically" investing is in the iShares Preferred & Income Securities ETF (NASDAQ:PFF). The ETF has turned in a YTD return of 6.20%. And it offers a nice dividend yield currently running at 5.61%.Source: Bloomberg UtilitiesUtilities also provided a good alternative to the general stock market's downturns last year. And so far this year, utilities continue to perform well. Utilities are typically structured between regulated and unregulated business units. The regulated businesses provide core local essential services with rate charges and margins set by local public utility commissions (PUCs). This provides dependable profits that form the base for reliable dividends making utilities good hedges for vacillating general stock markets.The unregulated businesses are typically ancillary activities on a national or global scale often involving power generation and transmission or pipeline operations. It is this side of the utilities that provides companies and their shareholders with further growth opportunities as well as higher dividend distributions. * 8 Cheap Stocks That Cost Less Than $10 One of the best ETFs to invest in the utilities segment is the Vanguard Utilities ETF (NYSEARCA:VPU). The ETF has a YTD return of 7.02% and provides exposure to a great collection of utilities with regulated and unregulated business units. In addition, it also generates and pays a nice dividend along the way currently yielding 3.22%.Source: Bloomberg HealthcareThe U.S. is a nation that is aging and becoming ever less healthy. This isn't a good mix for one of the leading economies of the planet. In a recent study by the U.S. Department of Commerce and the U.S. Census, by 2035, which is not that far away, it is projected that 78 million folks will be 65 years or older. And by that same year, those at or under the age of 18 years will be 76 million.This will be a significant change in the demographics of the nation, which has traditionally been a younger nation with more healthy and able folks to produce more for the economy.And it gets worse when it comes to the health of the overall population whether old or young. The Mayo Clinic recently released its extensive study of the health of the population and is saying that 3% or less is living a healthy lifestyle. This is not surprising as all that it takes is to take a stroll around many neighborhoods around the nation and do some people watching. We are a nation of fatter people that don't look like they could run up a flight of stairs let alone walk up one.The U.S. Center for Disease Control (CDC) just released a study and survey that indicates that 36.50% of the U.S. population is obese. This sets up the nation for more diabetes and all of the ancillary health effects of that disease. And then there is heart health and its complications. And if you're obese, slipping and falling is easier to do resulting in more injury risks.Add in a high poverty rate which can lead to further health challenges for young and old and other factors showing health troubles, including infant mortality and the nation doesn't look too healthy.And of course, last year we saw that life expectancy in the U.S. population stopped seeing improvements with some segments dropping in life years still to come. And as we know, the end of the line is where healthcare really ramps up to keep those alive a bit longer.No wonder that healthcare spending is big in the U.S. and climbing quickly. According to the U.S. Centers for Medicare and Medicaid Services (CMS), healthcare spending increased in 2017 by 3.90% to $3.9 trillion or $10,739 per person. This represents 17.90% of the then gross domestic product of the U.S. (GDP).And it is getting worse. The CMS projects that spending between 2017 through 2016 will continue to rise by an average annual rate of 5.50%, reaching $5.7 trillion. And given projections for GDP for the period, that would come closer to 20% of the overall economy.Now this isn't good news for the U.S. population, but it does provide for a silver lining for us as investors as investing in health is a good source for income and gains, even though they come from the increasingly ill of the economy.One of the best ways to get general exposure to the healthcare market is through the Vanguard Health Care ETF (NYSEARCA:VHT). This ETF has generated a YTD return of 8.11% and provides for well-diversified exposure to the leading healthcare stocks in the U.S. market.Source: Bloomberg Information TechnologyInformation technology continues to be one of the more exciting market segments that is easy to grab the attention of individual investors. After all, who doesn't like the latest new gotta-have gadgets whether in hand-held devices or the latest apps. This segment has plenty of companies that grab headlines and consumers' interest year in and year out.But one of the bigger stories isn't just about the next new-new thing, but rather the new way of making profits. More technology companies are moving away from depending on unit sales of gizmos and apps and more toward subscription sales. This is resulting in the rise of recurring income, which is not only more reliable than one-off unit sales, but it also provides the ability for technology companies to build-up their technology empires with more certainty.The result is that the companies in this space that have been successfully shifting to recurring income are driving more profits and better performing shares. That was the case last year in the segment generating positive returns, but also so far this year. * 7 of the Best Biotech ETFs The easy way to invest in the best of the information technology segment is in the Vanguard Information Technology ETF (NYSEARCA:VGT). This ETF has generated a YTD return of a whopping 15.98% and given the demand for the underlying products and services including for cloud computing and the emergence of fifth-generation wireless communications (5G), this segment and the ETF should remain in the green for the year.Source: Bloomberg Oil & GasOil and gas remain a lucrative market as the U.S. continues to emerge as the world's leading producer of the petrol patch. Global demand remains robust for crude oil and refined products and natural gas particularly in more easily transportable liquified natural gas (LNG) is driving profits for U.S. companies.In addition, the softer pricing, particularly for crude oil, prior to last year provided the incentive for producers to increase their field exploration and production (E&P) efficiencies. This, in turn, is providing for profitability, even at lower crude oil and natural gas prices.And one of the limitations for U.S. companies has been the lack of additional capacities in pipeline and marine terminal facilities for both oil and gas. But thankfully to the current administration, approvals have spurred additional and expanded lines and facilities providing for more deliverable petrol for more cashflows for U.S. companies.And then we have the Organization of Petroleum Producing Countries plus Russia (OPEC+). OPEC+ has come through with production limits which is also aiding petrol prices and operating margins for U.S. petroleum companies.The best ETF to invest in this segment is the Energy Select Sector SPDR ETF (NYSEARCA:XLE). This ETF has exposure to the up, down and midstream petrol companies. And it has generated a great YTD return of 15.29% with many inside the market segment still valued at lower levels of underlying book and trailing sales. Add in the dividend yield of 3.22%, and it makes for another in my collection of best ETFs for growth and income.Neil George is the editor of Profitable Investing and does not have any holdings in the securities mentioned above. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Consumer Stocks to Buy and Hold for Years * 4 China Stocks Soaring on Trade Hopes * 3 Esports Stocks to Benefit From the Boom Compare Brokers The post 7 of the Best ETFs to Buy for a Rock-Solid Portfolio appeared first on InvestorPlace.
The SPDR S&P Regional Banking ETF (NYSEArca: KRE), the largest regional bank exchange traded fund, and rival regional bank ETFs were among last year’s most disappointing assets. The group plunged even ...
The biggest bank deal in a decades has put the spotlight on ETFs that could be the best ways for investors to tap the opportunity arising from BB&T and SunTrust merger.
Regional bank stocks and sector-specific ETFs shook off the broader market weakness after BB&T (BBT) made a deal to buyout SunTrust Banks Inc. (STI) , combining the banks to form the sixth-largest U.S. retail bank. BB&T and SunTrust struck an all-stock deal in what amounts to the largest U.S. bank merger since the financial crisis, with a combined company value of $66 billion, the Wall Street Journal reports. The deal marks the first deal brokered for big U.S. banks after a tough regulatory environment following the financial crisis kept banks sitting out of the recent slew of mergers and acquisitions.
Chemical Financial Corp. and TCF Financial Corp. announced Monday an all-stock "merger of equals," in which TCF will merge into Chemical to create a Midwest bank with a combined $45 billion in assets. Under terms of the deal, TCF shareholders will receive 0.5081 Chemical shares for each TCF share they own. Based on Friday's stock closing prices, the deal values TCF shares at $21.58 each, which matches Friday's closing price. TCF had a market capitalization of $3.60 billion on Friday, and Chemical's market cap was $3.03 billion. Once the deal closes, which is expected in the late third quarter or early fourth quarter of 2019, TCF shareholders will own 54% of the combined company. The companies expect to generate about $180 million in annual cost synergies by 2020, with minimal reductions in branches. Shares of TCF have gained 4.3% over the past three months, while Chemical's stock has slipped 3.0%, the SPDR S&P Regional Banking ETF has tacked on 3.0% and the S&P 500 has edged up 0.2%.
The financial sector and bank ETFs may continue to gain momentum as the better-than-expected fourth quarter results and improving outlook help lift sentiment on this cheap segment of the market. Goldman ...
The number of investors that like bank stocks and the related exchange traded funds rapidly dwindling as the financial services sector ranks as one of this year's worst-performing groups in the S&P 500. “Outflows from the $21 billion Financial Select SPDR Fund, or XLF, are driving the record $9.2 billion that’s been pulled from all ETFs tracking financials this year,” reports Bloomberg. “Traders have also been closing out their bets in the $2.7 billion SPDR S&P Regional Banking ETF, which tracks an equal-weighted portfolio of banks stocks.
When it comes to sector exchange traded funds investors are displaying intense dissatisfaction with in 2018, financial services funds are at the top of the list. The 2018 performances of XLF and rival financial services ETFs are undoubtedly disappointing for investors that bet the sector would rally against the backdrop of rising interest rates. The Federal Reserve has boosted borrowing costs three times, moves many market observers believed would lift the fortunes of the rate-sensitive financial sector.
As was widely expected, the Federal Reserve recently raised interest rates for the fourth time in 2018. What was a surprise to some market observers was the Fed’s hawkish tone, which indicates multiple rate hikes could be in the offing in 2019. Rising interest rates are not always a negative thing, however, particularly if economic growth and inflation are supportive of those higher borrowing costs.
Banks are performing decently at present. But concerns related to global economic slowdown and diminishing chances of future rates will likely hamper growth.
Nancy Tengler of Tengler Wealth Management and Craig Callahan of ICON Advisers discuss stocks they're watching now with CNBC's "The Exchange" team.