|Bid||26.80 x 3000|
|Ask||27.50 x 305200|
|Day's Range||27.30 - 27.45|
|52 Week Range||22.05 - 29.07|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.05|
|Expense Ratio (net)||0.13%|
Investors have all but abandoned sectors considered defensive in favor of cyclical stocks that perform better during periods of healthy growth.
Although this year the stock market sentiment is in a much better state, the banks still have their reputation that they cannot hold their rallies. But therein lies part of the opportunity in American Express (NYSE:AXP) stock today.Source: Marcus Quigmire Via FlickrThis round of bank earnings has so far gone much better than the last one. There is some chatter about a sustainable rally in their stocks. On Tuesday we even saw a flip from red to green in stocks like Bank of America (NYSE:BAC) and JPMorgan (NYSE:JPM).This hasn't happened in a while, so perhaps the trend that banks can't hold their greens is dying. If so then this will provide a lift to AXP stock as well.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMoreover, transaction companies like AXP, Visa (NYSE:V), MasterCard (NYSE:MA) and Square (NYSE:SQ) rally in sympathy with money center banks. So if the Financial Select Sector SPDR Fund (NYSEARCA:XLF) rallies then so will the transactors like AXP.In addition, AXP is an excellent financial stock that has proven over the years that they can manage through adversity. Case in point was the debacle over losing the Costco (NASDAQ:COST) account. The stock suffered for a while but has since set new all-time highs.I was lucky to ride the last mega breakout in AXP from the December lows. American Express rallied over 25% so today I am trying to catch the next opportunity. Usually, I consider these technical opportunities tactical trades but this one doubles as a long term conviction investment. This is a stock I want to own for the long term. * 10 Best Stocks to Buy and Hold Forever The reaction this morning is slightly negative from the earnings. Management reported a boring quarter where they barely beat the bottom line and narrowly missed sales. The forward guidance was in line so they gave traders nothing to cheer. So AXP will move in line with the overall equity market for now.So if this rally in stocks continues, then AXP stock has the opportunity to break out from $114.40 to target another $10 run from there. There will be resistance there but if the bulls can close above it then the bears will be tired so the stock will overshoot higher.The macroeconomic condition still favors the bullish thesis. We do have threats from lingering headlines of tariff wars. But as we approach another round of elections means that those deals will happen so we go back to trading the profit and loss statements rather than headlines.Most importantly, the threat from the Federal Reserve inverting the curve has disappeared. They have affirmed that they won't cause the short term rates rise above the long term rates so this relives fears for banks. The steeper the curve the better are their profits.For American Express stock, the short term price action from the earnings headline is meaningless for the long term. All global transactions will be electronic so the demand on their services will continue to increase. There are only but a few companies that serve this market and they are a global household name. So they are well set to continue to prosper for years.Then there is the China market opportunity. The U.S. and China are nearing a deal where companies like AXP could have a new opportunity become available in the largest market on the planet.The short term technical threat for AXP stock is at $108 per share. If the bears push price below it they could target $102 per share. This is not a forecast but it is a scenario that could unfold in the next few weeks. But even then, this won't change the overall opportunity for the long term.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. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post Why You Should Buy and Hold American Express Stock appeared first on InvestorPlace.
U.S. stock indexes on Tuesday managed slight gains, led by a sharp advance in the financials sector, but limited by declines among some of the nation's largest health-care providers. The Dow Jones Industrial Average advanced 68 points, or 0.3%, at 26,452.45 (on a preliminary basis), the S&P 500 index edged up less than 0.1% to 2,907, as the Health Care Select Sector SPDR ETF, as measured by the health-care focused exchange-traded fund, declined by 2.1%, while the financial sector ETF, the Financial Select Sector SPDR ETF, climbed 1.4%, to lead the broad-market. UnitedHealth Group Inc. was in particular focus after Sen. Bernie Sanders called out the compensation of the CEO of the company's health-care unit UnitedHealthcare in a tweet. Shares ended down 4.1%, delivering a headwind to the Dow of which it is a component.
Shares of Bank of America Corp. took a dive in early trading Tuesday, after a warning that growth in net interest income for the year will fall short of expectations, as a slowing economy caps longer-term interest rates.
Bank of America Corp. said it repurchased $6.3 billion worth of its shares during the first quarter, as the shares surged, compared with $5.2 billion in buybacks in the fourth quarter. The bank didn't provide details at what prices it bought its shares during the first quarter, but the stock rose 12.0% during the quarter with a volume-weighed average price (VWAP) of $28.25. The stock closed Monday at $29.84. During the fourth quarter, the stock tumbled 16.4%, and Bank of America said it repurchased 194,391 shares at a weighted-average price of $26.92. The stock slumped 1.5% in premarket trade Tuesday, after Bank of America reported first-quarter earnings that beat expectations but revenue that fell short. The stock has slipped 0.3% over the past 12 months through Monday, while the SPDR Financial Select Sector ETF has lost 2.2% and the S&P 500 has gained 8.5%.
Understanding what levels and trends are important can lead to successful trading.In financial markets, there are certain price levels that are more significant than others with regards to the amount of supply and demand that exists at them. In addition, prices are always doing one of three things. They are either going up, going down or staying the same. If you understand these dynamics it would help your trading or investing strategies.Don't waste your time with things like Gann Theory, Harmonic Patterns or Elliot Waves. These things are like Bigfoot and UFOs … fun to talk about but hardly credible. I can tell you that in the 20 years I spent as a hedge fund trader, not once did I ever hear a portfolio manager or trader talk about them. What do successful traders look at? Important levels and trends.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 7 Best Long-Term Stocks for 2019 And Beyond I think that the S&P 500 will be neutral to slightly down this week. This is because many of the economic sectors that make up the S&P 500 are overbought and are at resistance levels.S&P 500 SPDR: The SPYs are overbought and near levels that were resistance in the past. There will probably be resistance around the $293 level because it is where the top was in September and October.If they head lower there will probably be support around $280. The $280 level is important because it was resistance during last March, June and again from October through December. It was also support throughout last July.Technology SPDR: The XLKs are overbought and testing important resistance. There is resistance around the $76 level because this is where the highs were last August through October. If they head lower there will probably be support around the $72 level because it was the top of the recent range.Financials SPDR: The XLFs hit resistance around the $27 level. They are slightly overbought. The levels between $27 and $27.50 have been the top of the range since November.Healthcare SPDR: The XLVs are at the bottom of the range that they have been in since February. The action over the past two days has been very weak. If they head lower there may be support around $86.50. It was the top in March and the bottom in October of 2018.Consumer Discretionary SPDR: The XLYs testing resistance around the October highs. They are very overbought, so there will probably be some consolidation or profit-taking. If they head lower there will probably be support around $111 because it was a resistance level from early December through March.Industrials SPDR: The XLIs broke their short-term downtrend and are consolidating around the $77 level. Longer-term, there may be resistance around the $80 level because it is where the highs were in January and September of 2018. There may be support again around $71 because it is where the lows were in late 2017 and the first half of 2018.Consumer Staples SPDR: The XLPs are testing resistance around the levels that were the highs at the end of last year. They are slightly overbought. They found support around the $50 level during the selloff at the end of December. This level was the low in 2016, and the top of the range throughout 2015.Consumer Staples SPDR Long-Term: The XLPs recently found support again around the very important $50 level. This level was the low in 2016, and the top of the range throughout 2015. It was also the top of the range during this past May.Energy SPDR: The XLEs seem to be breaking the resistance around the $66.50 level. This level has been resistance for the past two months. There is resistance around this level because it was support in early 2018.Energy SPDR Long-Term: The XLEs could be breaking resistance around the $66.50 level. There is resistance here because it was support a year ago. The $78 level is important long-term resistance. The levels around $55 are important long-term support.Materials SPDR: The XLBs are testing resistance around the $58 level. This level was the bottom of the range from last June through September. They are very overbought. The last two times that they were this overbought, in September and February, a selloff followed.Utilities SPDR: The XLUs broke their recent uptrend after becoming overbought and are consolidating. There is support around the $57 level because this is where the highs were in December. In September and then again in late December and early January they found support around the $52 level.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 * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post S&P 500 Sector SPDR Preview: What to Watch This Week appeared first on InvestorPlace.
Financial stocks and sector-related exchange traded funds retreated Monday after Goldman Sachs (NYSE: GS) announced a decline in first-quarter profits and Citigroup (NYSE: C) revealed a worse-than-expected ...
A slight flattening of the yield curve may hurt bank stocks' profitability, but underwriting of several unicorn IPOs should help these financial ETFs.
Trump Blames the Fed for Economic Slowdown Yet Again(Continued from Prior Part)IMFPresident Donald Trump has lashed out against the Federal Reserve and sees its tightening running contrary to the administration’s growth agenda. Meanwhile, despite
Financial sector exchange-traded funds (ETFs) reacted to the mixed earnings results of Goldman Sachs and Citigroup, which reported first-quarter earnings on Monday. The Financial Select Sector SPDR Fund (XLF) was little changed, falling 0.52 percent while for traders, the Direxion Daily Financial Bull 3X ETF (FAS) was down 1.47 percent on the added leverage as of 11:15 a.m. ET. Goldman Sachs reported that revenue fell 13 percent to $8.81 billion, which came below analyst's $8.9 billion estimate.
Shares of Charles Schwab Corp. jumped 3.9% in premarket trade Monday, after the discount broker reported a first-quarter profit and revenue that rose above expectations. Net income grew to $925 million, or 69 cents a share, from $746 million, or 55 cents a share, in the same period a year ago. The FactSet EPS consensus was 66 cents. Total revenue increased 14% to $2.72 billion, topping the FactSet consensus of $2.68 billion. New brokerage accounts total 386,000 during the quarter, and core net new assets rose 6% annualized to $51.7 billion. Total clients assets rose 8% to $3.59 trillion. Clients' daily average revenue trades fell 10% to 418,000 while asset-based trades rose 7% to 149,000. The stock has rallied 9.2% year to date, while the SPDR Financial Select Sector ETF has climbed 13.9% and the S&P 500 has hiked up 16.0%.
Financial sector-specific exchange traded funds strengthened after J.P. Morgan Chase (NYSE: JPM) and PNC Financial Services Group (NYSE: PNC) helped kick off the earnings season with better-than-expected ...
Bank stocks have developed a terrible reputation on Wall Street that they can't hold their rallies. Consensus also is that they are cheap but a value trap. This is the effect of having central banks meddling with global liquidity since the 2008 financial disaster.Source: Shutterstock This morning Well Fargo (NYSE:WFC) and JPMorgan (NYSE:JPM) reported earnings and so far investors liked what they saw in JPM, but seem more uncertain about WFC -- an early pop in Wells Fargo has since turned negative. This is emblematic of the current opinion among investors. JPM is revered as the best of the best while WFC is the bad-boy poster child of the financials.WFC deserves its new reputation, as it went from jaw-dropping record reports to jaw-dropping stupidity with their efforts to accomplish those superb results. They have since changed their ways, but it's hard to shed a reputation like that once the scandal comes out.InvestorPlace - Stock Market News, Stock Advice & Trading TipsRecently, the Wells Fargo CEO Tim Sloan left the company. This should relieve some pressure off WFC stock, as he was locked in a public battle with the outspoken Senator Elizabeth Warren. She has been on a crusade to punish them for their wrongdoing.Both sides are wrong. The Wells Fargo's schemes and Warren's hatred are extremes, and somewhere in the middle lies the truth. But as it fades out of the headlines, the WFC stock price should go back to trading on its own merit. * 7 Marijuana Companies: Which Pot Stocks Should You Buy? This leads me to today's earnings report.Management delivered a decent quarter, as they beat top and bottom lines. Revenues fell this quarter, but they beat the expectations. They remain optimistic about the customer experience and they see their efforts to mend the fences there as successful.What worries me a bit is that WFC reported that they are suffering from the flattening yield curve. The U.S. Federal reserve made this worse for banks last year as they hiked short term rates. This shrinks the gap between long-term and short-term rates, thereby reducing how banks can profit on loans. They borrow on short-term rates to lend it out on long term. WFC net interest margin fell to 2.91%.So is it safe to own Wells Fargo shares? Yes, especially if I want to own them for the long term. I would, however, wait a little while, since banks are notorious for fading earnings pops.Fundamentally, WFC stock is cheap, as it sells at an 11x trailing price-to-earnings ratio. This is in line with its peers, so that alone is not a reason to own it. The stock also pays a respectable 3.8% dividend, which provides cover for longs while they wait for a lasting recovery.Technically, WFC stock needs this earnings bounce to hold. Coming into the event, the stock was severely lagging the sector. It was only up 3.6% when the Financial Select Sector SPDR Fund (NYSEARCA:XLF) was up 12% year to date. Moreover, WFC is already facing another bearish pattern that could target $45.50 per share if the pullback after this morning's pop continues.So in summary, a lot is riding on the stock action for the next few days. But in general, Well Fargo stock will be a nice one to own for the long term. The short-term gyrations in the stock are mere noise when the overall health of the bank is solid. After all Warren Buffet, who is the best investor of all times, owns it, so it feels safe for me to also own it.Bottom line, WFC beat top- and bottom-line expectations, so they are executing well on plans. They are also repairing their reputation, which can only help.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. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post Wells Fargo Delivered a Solid Report -- Own It appeared first on InvestorPlace.
Shares of Wells Fargo & Co. took dive in morning trade, swinging to a loss from a gain, after the bank provided a downbeat full-year outlook for net interest, citing the negative impact of the current low interest rate environment and tighter loan spreads from competition. The stock dropped 1.8% toward a 3-month low, after being up as much as 2.2% at the intraday high. Chief Financial Officer John Shrewsberry said on the post earnings conference call that net interest income is now expected to decline 2% to 5% in 2019, compared with previous guidance of a 2% decline to a 2% rise. The current FactSet consensus of $51.15 billion implies a 1.0% increase. "Several factors have driven a shift in our view including a lower absolute rate outlook, a flatter curve, tightening loan spreads resulting from a competitive market with ample liquidity and continued upward pressure on deposit pricing," Shrewsberry said, according to a transcript provided by FactSet. The stock has now gained 1.8% year to date, while the SPDR Financial Select Sector ETF has rallied 13.5% and the S&P 500 has climbed 15.8%.
Shares of exchange-traded funds that are focused on the financial sector were seeing their best gains since April 1. The Financial Select Sector SPDR ETF was up 2.5% on Friday morning, while the Invesco KBW Bank ETF , focused on large-capitalization banks, advanced 2.4% in early morning action. Those gains, if they hold, would represent the best day for the ETFs since April 1, according to FactSet data. That climb follows better-than-expected first-quarter results from JPMorgan Chase & Co. and Wells Fargo & Co. , which helped to lift the broader market. The performance of large banks can be a bellwether for coming earnings because that group unofficially kicks off earnings season on Wall Street. Better-than-expected performance from banks also can provide clues about the health of the overall economy, particularly as investors and economists worry about the possibility of a recession taking hold. A rise in the banking sector was helping to power the S&P 500 index , with the S&P 500's financial sector gaining about 2%.
Financial stocks are on track for a broad rally Friday, as better-than-expected first-quarter earnings reports from sector heavyweights J.P. Morgan Chase & Co. and Wells Fargo & Co. providing a boost. The SPDR Financial Select Sector ETF rallied 1.6% ahead of the open, with shares of J.P. Morgan surging 2.7% and Wells Fargo edging up 0.2%. Among banks scheduled to report results on Monday, shares of Citigroup Inc. rallied 1.9% and Goldman Sachs Group Inc. hiked up 2.1%. Elsewhere, shares of Bank of America Corp. , which is scheduled to report on Tuesday, rose 1.8% and Berkshire Hathaway Inc. tacked on 0.8%. Meanwhile, futures for the Dow Jones Industrial Average rose 241 points, or 0.9%.
Shares of J.P. Morgan Chase & Co. surged 2.3% in premarket trade Friday after the banking giant reported first-quarter profit and revenue that rose above expectations, although fixed income and equity markets revenue fell. Net income rose to $9.18 billion, or $2.65 a share, from $8.71 billion, or $2.37 a share, in the same period a year ago. The FactSet earnings-per-share consensus was $2.35. Total revenue increased to $29.85 billion from $28.52 billion, above the FactSet consensus of $28.44 billion. Net interest income grew 8% to $14.6 billion, topping the FactSet consensus of $14.4 billion. Revenue for the consumer & community banking and corporate & investment bank business beat expectations, commercial banking revenue was inline and asset & wealth management revenue missed. Excluding a year-ago gain from an accounting change, markets reevnue fell 10%, as fixed income market revenue declined 8% and equity markets revenue slid 13%. "Even amid some global geopolitical uncertainty, the U.S. economy continues to grow, employment and wages are going up, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong," said Chief Executive Jamie Dimon. The stock has rallied 8.8% year to date through Thursday, while the SPDR Financial Select Sector ETF has climbed 11.9% and the Dow Jones Industrial Average has advanced 12.1%.
Tesla stock was under pressure again in afternoon trading Thursday as major stock indexes held modest losses. JPMorgan rallied ahead of earnings.
With J.P. Morgan Chase (JPM) and Wells Fargo (WFC) kicking off this earnings season, exchange traded fund investors have already already showed some optimism over first quarter results as they jump into financial sector-related ETFs. The Financial Select Sector SPDR (XLF) , the largest financial sector-related ETF on the market, has already attracted $815 million in net inflows so far in April, according to ETFdb data. First-quarter earnings for the financial sector's biggest players will start on Friday with J.P. Morgan Chase and Wells Fargo up to bat, providing a preview of how the Federal Reserve's shifting monetary policy affected some Wall Street players at the start of the year.
CEOs from the big banks will head to Capitol Hill to testify before the House Committee of Financial Services on Wednesday.
The financial services sector, the S&P 500's third-largest sector by weight, is getting resurrected this year. Last year, the Financial Select Sector SPDR (NYSEARCA:XLF), the largest exchange traded fund tracking the sector's stocks, slumped 13% and that was with the benefit of four interest-rate hikes by the Federal Reserve.Source: Shutterstock Barely more than three months into 2019, a year in which it is increasingly unlikely that the Fed will hike rates, XLF is up about 12%. XLF is home to 67 stocks, so there are plenty of names driving the fund higher this year. One of the primary contributors to the rally of XLF and that of the broader financial services sector is Bank of America Corp. (NYSE:BAC). BAC stock is up 18.30% year-to-date, meaning it is beating XLF by more than 50%. * 7 High-Risk Stocks With Big Potential Rewards Yield Curve InversionRecently, the yield curve inverted, meaning 10-year Treasury yields jumped over those on 3-month notes, a scenario that has been a reliable indicator of coming recessions. But that inversion has been reversed, boosting BAC stock and other bank names.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"That's good news for banks on its own, but it also clears the way for investors to focus on another positive development: the Federal Reserve's intention to hold off on raising interest rates, a stance the central bank made clear after the March 20 meeting of its monetary-policy committee," according to Barron's.In April, Bank of America stock is up about 5% even after CEO Brian Moynihan warned of lower first-quarter trading revenue."Bank of America's trading revenue probably dropped about 15 percent in the first quarter amid a slow start to the year," Moynihan said. "Equities revenue dropped more than 20%, in part because of the U.S. government shutdown," reported CNBC. More Than TradingWhile Bank of America has significant investment banking and trading operations, it is not a traditional investment bank. Rather, BAC is a money-center bank, offering products such as credit and debit cards, residential mortgages, home equity loans, automotive loans and more.Money-center banks make money by borrowing funds at short-term rates and making loans at longer-term rates. On the consumer-banking front, Bank of America faces intense competition. While the company has massive footprints in major markets such as California, the New York metro area and Texas, rival JPMorgan Chase & Co. (NYSE:JPM), the largest U.S. bank, has announced that it's opening new branches in some markets currently dominated by BAC.However, competition is nothing new among the major money-center banks, and Wall Street remains bullish on BAC stock. The average analyst price target on Bank of America stock is just over $33, implying upside of more than 10% from today's early-afternoon price of $29.15.Bank of America stock's dividend has also grown quite a bit . Today BAC stock pays an annual dividend of 60 cents per share and yields 2.06%. That is up 1.32% from a year ago. At the end of the first quarter of 2018, Bank of America's quarterly payout was 12 cents per share, compared with 15 cents today. The Bottom Line on BAC StockThe banking industry's fundamentals are solid, perhaps even better than in the years before the financial crisis. Big money-center banks, such as Bank of America, are leading that fundamental resurgence.Investors should note that buying BAC stock, or any other big-bank stock for that matter, is a bet on continued economic expansion. It is common sense: banks make more loans when the economy is good and pull back on lending when the economy slows. A sudden deterioration of U.S. economic fundamentals would hurt the cyclical financial-services sector.Bank of America stock is up 28.64% from its December lows and continued rejection at the $30 level could send the shares lower, giving investors who missed the recent run higher an opportunity to get into the BAC game.As of this writing, Todd Shriber owns shares of XLF. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Data Center Buys That Deliver Sizable Income * 7 High-Risk Stocks With Big Potential Rewards * 3 Marijuana Stocks to Watch as New York, New Jersey Delay Legalization Compare Brokers The post Bank of America Is Reborn as a Financial-Services Leader appeared first on InvestorPlace.
Bank of America Corp. said Friday it will more than double the number of financial centers that will be modernized and will add more than 2,700 "enhanced" ATMs to its network, over the next three years. The bank has modernized 1,000 centers the past three years, and will enhance another 1,500. The bank said it will complete this year upgrading its current network of 16,000 ATMs, that will allow users to choose their mix of bills withdrawn, make credit card payments and to have access with mobile devices. BofA said it plans to open 90 new financial centers this year, and 350 new centers over the next three years. "Although more clients are using our digital banking capabilities, many still visit our centers for in-person conversations about some of their more complex financial needs," said Dean Athanasia, president of consumer and small business. "Our redesigned centers make it easy for them to access banking, lending, small business and investing professionals for tailored solutions and advice on their life priorities and financial goals." The stock, up 0.3% in premarket trade, has rallied 18.3% this year, while the SPDR Financial Select Sector ETF has rallied 11.5% and the Dow Jones Industrial Average has advanced 14.9%.
On Wednesday, CEOs of the nation’s largest banks are set to testify before the House Committee on Financial Services. One of the many hearings that will be in the spotlight will be that of JPMorgan Chairman and CEO's Jamie Dimon, as he is questioned by Alexandria Ocasio-Cortez. Yahoo Finance's Editor-in-Chief Andy Serwer joins The Final Round to discuss.