|Bid||39.24 x 1800|
|Ask||39.25 x 900|
|Day's Range||38.95 - 39.49|
|52 Week Range||27.26 - 59.38|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-33.01%|
|Beta (5Y Monthly)||1.68|
|Expense Ratio (net)||0.35%|
SPDR S&P Regional Bank shows the sector rotation going on the last couple days
Elmira Savings Bank said Wednesday it was lowering its quarterly dividend by 35%, to 15 cents a share from a previous payout of 23 cents a share. The new dividend will be payable June 12 to shareholders of record on June 5. "We made a difficult decision to reduce our cash dividend for the current quarter due to the uncertainty of the economic recovery," said Chief Executive Thomas Carr. The Elmira, New York-based savings bank's stock rose 7.4% in afternoon trading. Based on current stock prices, the new annual dividend rate would imply a dividend yield of 5.16%, compared with the yield for the SPDR S&P Regional Banking ETF of 3.86% and the implied yield for the S&P 500 of 1.94%. The stock has lost 23.0% year to date, while the regional bank ETF has shed 39.2% and the S&P 500 has lost 8.1%.
The Federal Reserve says the financial system is stronger than it was in 2008, but warned that the COVID-19 pandemic raises “significant” risks particularly in corporate credit.
With equities on the ropes this week, it's time we looked at the best bear trades to bank on for the next market drop.The stock rebound since March has been violent. Its duration and magnitude have caught many traders by surprise, particularly those obsessing over the grim economic data. That said, trying to reconcile rising asset prices on Wall Street with the warzone on Main Street has generated more than a little cognitive dissonance.However, spectators convinced that the chickens would eventually come home to roost are seeing their forecast play out this week. Stocks are falling anew, especially in the most economically sensitive areas like small-caps.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 20 Stocks to Buy If You're Still Betting on America to Thrive So, rather than try to pick which individual stocks, we're focusing instead on playing the weakest industries. There are many to choose from, but here are three underperforming ETFs that look particularly vulnerable: * iShares Russell 2000 Index ETF (NYSEARCA:IWM) * SPDR S&P Banking ETF (NYSEARCA:KRE) * SPDR S&P Oil & Gas Exploration & Production ETF (NYSEARCA:XOP)Let's break down the charts of each, and build high reward bear trades on each. High Reward Bear Trades: iShares Russell 2000 Index (IWM) Click to EnlargeSource: The thinkorswim® platform from TD Ameritrade If you find the Nasdaq Composite ETF (NASDAQ:QQQ) index a stone's throw from all-time highs a bit quizzical given the horror show that is the economy right now, then it's because you're looking at the wrong basket of stocks. While tech mega-caps have found themselves largely insulated from the nasty price action, small-caps have not; They've born the brunt of the damage.From peak-to-trough, the Nasdaq Composite ETF only fell about 30%. By contrast, the Russell 2000 Index was down 41%. And though the selling pressure eased through the back half of March and all of April, the relative weakness remained. Currently, QQQ is only 7.5% off its peak, but IWM is off by 26.5%.Moreover, the rationale for small-caps' weak ways is simple: They're more sensitive to economic downturns. With this week's whack, IWM now sports a lower-swing high and lower low. Though it rallied back by day's end, it also pushed below the 50-day moving average. Wednesday's slide was particularly ugly, with volume swelling past 58 million shares.If you're willing to bet the downturn returns IWM close to March's low over the coming two months, then here's a trade that will deliver big returns:The Trade: Buy the July $105/$100 bear put spread for around 90 cents.You're risking 90 cents to make $4.10 if IWM falls to $100. SPDR S&P Banking ETF (KRE) Click to EnlargeSource: The thinkorswim® platform from TD Ameritrade One of the industries weighing on small caps has been regional banks. The specter of a deep recession caused investors to flee KRE throughout February and March. Ultimately, the fund fell 52% from 2019's peak before a bottom was found. But the bounce-back has been meager compared to the robust buying elsewhere.What's worse, this week saw KRE crack support and tumble below its 20-day and 50-day moving averages. Momentum increased during the downswing to confirm sellers have returned to power. Thursday's session is giving bulls some hope but it's going to take more than a single session of strength to right this hole-ridden ship.If you think we ultimately return to March's levels of $27, then this bear trade offers a smile-inducing payout.The Trade: Buy the July $30/$27 bear put spread for around $1.00. * 5 High-Quality Company Stocks to Buy For Less Than $10 You're risking $1 to make $3 if KRE sits below $27 at expiration. SPDR S&P Oil & Gas Exploration & Production ETF (XOP) Click to EnlargeSource: The thinkorswim® platform from TD Ameritrade The final spot ripe for bear trades is the energy sector. Specifically, we're focusing on the Oil & Gas ETF, XOP. It's performed far worse than the Energy Sector ETF (NYSEARCA:XLE) in large part because it lacks the heavy weighting toward large caps that XLE does.Crashing oil prices have done a number on all energy-related ETFs. Some companies have already declared bankruptcy, and it could be just the beginning. While it's true that XOP has enjoyed a nice rebound off its lows, even rising north of the 50-day moving average, it remains one of the more vulnerable areas of the market. This week's drop saw XOP break short-term support and its 20-day moving average. It's the first support breach since the uptrend began and could spell the start of the next downswing.Once again, we're harnessing bear put spreads to profit.The Trade: Buy the Sep $35/$30 put spread for $1.00You're risking $1 to make $4 if XOP is below $30 at expiration.For a free trial to the best trading community on the planet and Tyler's current home, click here! As of this writing, Tyler held bullish IWM positions. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post 3 High-Reward Bear Trades for the Next Market Crash appeared first on InvestorPlace.
ETF.com Managing Editor Cinthia Murphy joins Yahoo Finance's Seana Smith to break down the ETFs she's watch in Q2 amid market turmoil over the coronavirus.
Peter Winter, Wedbush Securities Managing Director, joins Yahoo Finance’s Alexis Christoforous and Brian Sozzi to discuss how the banks are faring during the market volatility and what decisions they should make going forward during this Pandemic.
The recent market sell-off could be presenting traders with a chance to buy into certain market segments such as U.S. regional banks.
With mergers and acquisition activity picking up, regional banks and financial sector ETFs that track smaller firms could benefit from the increased consolidation. There were 35 deals in the regional banking space last year, the highest number since 1999, and with the 2020 presidential election looming, buyers may be in a hurry to lock in deals in the first half of the year before a potentially new president comes to office, MarketWatch reports. “Bankers might have a short window to get those deals done,” S&P Global Market Intelligence said in a note.
The SPDR S&P Regional Banking ETF (KRE) , the largest ETF dedicated to regional bank equities, gained 27.4% last year. While that lagged broader benchmarks, the performance was still impressive when considering the Federal Reserve cut interest rates three times. Rising interest rates historically benefit regional banks.
While inorganic growth efforts, decent loan demand and technology upgrades will support bank stocks in 2020, lower interest rates pose a major headwind.
Long-term buy signals suggest that the regional banking sector could be the group to watch in the closing weeks of 2019 and into 2020.
The SPDR S&P Regional Banking ETF (NYSEArca: KRE), the largest ETF dedicated to regional bank equities, is up just 7.25% this year, about half the gains posted by diversified financial services ETFs. KRE ...
The Federal Reserve could make major changes to bank rules and alleviate some of the pressure on the financial sector and related ETFs. The Fed said it would vote October 10 on a measure to ease liquidity ...
Fear of global economic slowdown, trade war worries, lower rates and flattening of yield curve are likely to adversely impact banking sector earnings in the near term.
Bank sector-related ETFs found strength Monday as government bonds pulled back and yields climbed on easing investor fears surrounding a U.S.-China trade war that has shown signs of de-escalation. On Monday, ...
The August job-growth report indicates addition of 130,000 jobs, down from the commendable July figures, which might impact the Fed officials' further course of action.