Latest news with #XLF
Yahoo
8 hours ago
- Business
- Yahoo
Erie Indemnity Stock: Is ERIE Underperforming the Financial Sector?
Erie, Pennsylvania-based Erie Indemnity Company (ERIE) serves as the attorney-in-fact for the subscribers at the Erie Insurance Exchange, which is a reciprocal insurer that writes property and casualty insurance. With a market cap of $16.1 billion, the company provides issuance and renewal services, sales-related services, and underwriting services. Companies valued at $10 billion or more are generally classified as 'large-cap' stocks, and Erie Indemnity Company fits this description perfectly. The company offers strong customer service and a regional focus, supporting a network of independent insurance agents and providing a wide range of personal and commercial insurance products. Dear Tesla Stock Fans, Mark Your Calendars for June 30 3 ETFs with Dividend Yields of 12% or Higher for Your Income Portfolio Nvidia Is Quickly Approaching a New Record High. Is It Too Late to Buy NVDA Stock? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Shares of Erie Indemnity have dipped 36.3% from its 52-week high of $547. ERIE stock has dropped 16.6% over the past three months, lagging behind the Financial Select Sector SPDR Fund's (XLF) 2.4% increase. In the long term, ERIE stock has dipped 15.4% on a YTD basis, whereas XLF has risen 3.9%. Additionally, over the past 52 weeks, shares of NTAP have decreased 2.3%, underperforming XLF's 21.7% return. The stock has been trading below its 50-day moving average since late April. Also, despite some fluctuations, the stock has been trading below its 200-day moving average since early December last year. Shares of ERIE tumbled 11.5% following the release of its mixed Q1 2025 results on Apr. 24. Driven by a 13.4% increase in management fee revenue and a 29% jump in investment income, its quarterly revenue rose 12.3% from the year-ago quarter to $989.4 million, exceeding Street forecasts. However, EPS came in at $2.65, a 11.3% year-over-year increase, but missed analysts' estimates, which dampened investor sentiment. Compared to its peer, Willis Towers Watson Public Limited Company (WTW) has outpaced ERIE stock. Shares of WTW have declined 5% on a YTD basis and gained 16.5% over the past 52 weeks. Although ERIE has underperformed relative to the sector, analysts are moderately optimistic about its stock's prospects. ERIE has a consensus rating of 'Moderate Buy' from the two analysts covering the stock, and as of writing, it is trading notably above the mean price target of $73. On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
4 days ago
- Business
- Yahoo
Stock Market News for Jun 16, 2025
Wall Street closed sharply lower on Friday, pulled down by tech and financial stocks. Investor mood was jittery on Iran's retaliation against Israel's attack, and the situation in the Middle East escalating heavily. All three benchmark indexes closed the session in the red. The Dow Jones Industrial Average (DJI) lost 1.8%, or 769.83 points, to close at 42,197.79. Twenty-eight components of the 30-stock index ended in negative territory, while two ended in positive. The tech-heavy Nasdaq Composite fell 255.66 points, or 1.3%, to close at 19,406.83. The S&P 500 slid 68.29 points, or 1.1%, to close at 5,976.97. Ten of the 11 broad sectors of the benchmark index closed in the red. The Financials Select Sector SPDR (XLF), the Technology Select Sector SPDR (XLK) and the Consumer Staples Select Sector SPDR (XLP) declined 2%, 1.4% and 1.2%, respectively, while the Energy Select Sector SPDR (XLE) advanced 1.4%. The fear-gauge CBOE Volatility Index (VIX) increased 15.5% to 20.82. A total of 17.9 billion shares were traded on Friday, lower than the last 20-session average of 18.2 billion. Decliners outnumbered advancers by a 6.1-to-1 ratio on the S&P 500. On Friday, markets felt war jitters as escalating tensions between Iran and Israel unnerved investors and triggered a broad selloff across global equity markets. Reports of missile exchanges and drone strikes between the two nations heightened fears of a larger Middle East conflict, raising concerns over global oil supply disruptions and geopolitical instability. Crude oil prices soared above $90 per barrel during intraday trading amid worries that a persisting conflict could disrupt the oil supply chain through the Strait of Hormuz, a key passageway for global energy supplies. The energy sector saw modest gains due to the surge in oil prices, but that was not enough to offset sharp declines in technology, financials and industrials. Safe-haven assets like gold and U.S. Treasury bonds gained as investors fled equities in search of stability. If tensions escalate further or end up drawing in other regional powers, the financial implications could be severe, potentially derailing the recent rally in U.S. equities driven by hopes of interest rate cuts and economic recovery. As geopolitical risks intensified, traders trimmed exposure to risk assets, causing a sudden reversal in sentiment that had been largely optimistic throughout early June. However, on cue, defense stocks took center stage. Consequently, shares of Lockheed Martin Corporation LMT and Northrop Grumman Corporation NOC rose 3.7% and 3.9%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. In the week, the S&P 500, the Nasdaq and the Dow fell 0.4%, 0.6% and 1.3%, respectively. The week started off on a good note with the United States and China negotiating a trade deal in London, and both the consumer and producer side inflation indicators showed that prices had gone up below expectations. However, a full-scale conflict between Israel and Iran that broke out late in the week weighed on the markets and pared whatever gains had been made. The University of Michigan's Consumer Sentiment for June came in at 60.5, increasing significantly from May's 52.2. This was the index's highest reading since February, when it was 64.7. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Effettua l'accesso per consultare il tuo portafoglio
CNBC
21-05-2025
- Business
- CNBC
Bank stocks should be scooped up after declines, according to the charts
The Financials Select Sector SPDR Fund (XLF) has been among the sector leaders during the market's epic market snapback from the April lows. Since the intraday low on April 7, it has gained a cool 15%. While it has lagged the biggest leaders, XLF got to within 1% of its Feb. 28 all-time closing high earlier this week. Very few have done that so far, especially ETFs based in the US. The two big questions now for XLF – and for many others are: "Has it come too far, too fast?" Such strong gains in six weeks don't happen a lot, and the pace never lasts. So, yes, we expect the velocity to slow again soon, as well. But if/when that does happen, question number two will be, "Can XLF avoid a total roll over?" That answer is yes, as well. We're addressing both of these in greater detail today. Stretched indicators Here's XLF with its MACD and 14-Day RSI indicators. The XLF's 14-Day RSI hit a high of 68 as of Monday's close, just barely missing being "officially" overbought. That said, it was the highest reading since Jan. 25. XLF zigged and zagged for another few weeks, ultimately not making much headway before rolling over. The red lines highlight the RSI peaks going back to last April, which typically have happened slightly before the MACD sell signals triggered. This is because a sell signal in the MACD (a momentum gauge based on the difference between the 12-day and 26-day EMAs) always occurs AFTER a security begins to weaken. The same thing could be taking place again soon. Bullish patterns Indeed, most of the pictured sell-offs above were relatively harmless. And as the next chart shows, the XLF proved that it could regroup many times prior, form bullish patterns and continue higher. As XLF began to stall lately, we highlighted this big, potential bullish pattern. And while it's MUCH larger than the shorter-term versions from 2024, this reminds us how well the ETF leveraged bullish setups during the long uptrend the last two years. We noted at the time that it could stand to digest the massive run a bit now. That clearly remains the case now. If it can do so constructively, then a real right shoulder can begin to take shape. That's the blueprint of which XLF can follow again now. European financials – even more extended While the XLF appears extended, it's nothing compared to the EUFN European Financials ETF , which somehow keeps getting even stronger. It's now up over 30% from the April low and sporting a 14-DAY RSI of 77, which is very high. Like the XLF chart above, here's both the RSI and MACD indicators, with the red line showing the RSI peaks. There's no way to know when the indicator will peak this time, but when it does, it could trigger another MACD sell signal, as well. The MACD now has reached levels we last saw in March. While the ensuing decline was market related back then, it's clear that the very strong pop had run out of steam. We should be mindful of momentum slowing again soon. The bottom line is that strength in financial stocks both domestically and abroad is a bullish sign for the stock market and for the global economy. But even the boring bank stocks can get overheated at times. Thus, buying the dip is the recommended strategy. DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
CNBC
25-04-2025
- Business
- CNBC
Bank of America likes these high-quality financial stocks — and they pay a dividend
High-quality stocks with solid dividend yields are a good way to hedge against the recent market turbulence, according to Bank of America. Among those are financial stocks , which have been seesawing along with the rest of the market amid trade tensions and concerns about the economy. Stocks moved higher this week but are still down since President Donald Trump announced his new tariffs on April 2. Reciprocal tariffs are now paused as Trump holds negotiations, but his unilateral 10% levy remains intact. The financial sector also rose this week, with the Financial Select SPDR Fund gaining about 3%. The fund is essentially flat for the year, while the S & P 500 has dropped almost 7% year to date. Bank of America has an overweight rating on the sector. XLF YTD mountain Financial Select SPDR Fund While financials have experienced recent rockiness, many on Wall Street have said they expect the industry to benefit from the Trump presidency, largely due to looser regulations. Still, Bank of America expects the market volatility to continue due to increasing policy uncertainty. In addition, tariffs bring risks of inflation. "High quality is the best hedge against volatility in our view … and inflation-protected income will likely drive alpha," Savita Subramanian, the firm's equity and quant strategist, said in a note last week. "A traditional high quality dividend yield approach may be prudent." Among those stocks Subramanian focused on were financials in the Russell 3000 that pay dividends. From these names, she chose stocks that the bank rates high quality based largely on the growth and stability of earnings and dividends over a 10-year period. In addition, the return on equity for the companies was greater than that of the universe median and their indicated dividend yield, which is the annualized yield based on the most recently announced dividend, is greater than that of the index. Lastly, the ratio of the last 12-month earnings per share to indicated next 12-month dividend per share must be greater than 1.0. Here are five buy-rated names that made the cut. Morgan Stanley , which had a 3.29% dividend yield, as of Thursday's close, reported an earnings and revenue beat earlier this month for its first quarter. The investment bank said its stock trading revenue jumped 45% amid a more volatile trading environment. Still, CEO Ted Pick acknowledged on the earnings conference call that the outlook in this environment is "less predictable." "The stock, bond and currency markets are exhibiting the kind of overnight and intraday volatility that reflect rapidly changing probability assessments of different policy outcomes," he said. "Given this unpredictability, some clients are deferring strategic activity, while others are proceeding." Shares have lost 8% year to date. JPMorgan also had a solid quarter , with its revenue of $46.01 billion topping the $44.11 billion consensus estimate, according to LSEG. The bank also saw its trading revenue surge. In addition, CEO Jamie Dimon said JPMorgan bought back $7 billion of common stock and announced a 12% dividend increase. The stock yields 2.32%, as of Thursday. While he touted the company's strong results in a statement, he also said the firm is prepared for a wide range of scenarios resulting from tariffs, sticky inflation, high fiscal deficits and market volatility. "Our fortress balance sheet enables the Firm to be a pillar of strength, particularly during volatile or challenging times," Dimon said. Shares of JPMorgan have gained 2% so far this year. Meanwhile, BlackRock posted mixed results earlier this month for its first quarter. Its revenue of $5.28 billion missed the LSEG consensus estimate of $5.34 billion, but its adjusted earnings per share of $11.30 beat the $10.14 per share expected by analysts. BLK YTD mountain BlackRock BlackRock CEO Larry Fink said in a statement announcing the results that the firm's positioning and connectivity with clients are "stronger than ever." He also acknowledged that anxiety and uncertainty about the future are dominating conversations with clients. "We've seen periods like this before when there were large, structural shifts in policy and markets – like the financial crisis, COVID, and surging inflation in 2022," he wrote. "We always stayed connected with clients, and some of BlackRock's biggest leaps in growth followed." The stock, which yields 2.33%, is down nearly 11% year to date. Lastly, two regional banks also made the list. Fifth Third Bancorp has a 4.22% dividend yield and is down about 15% year to date. East West Bancorp yields 2.84% and has lost about 10% so far this year. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today's dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives , with a special edition of Pro Talks with Tom Lee. You'll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
Yahoo
17-04-2025
- Business
- Yahoo
XLF, Bank Stocks Rise on Surge in Volatility Trading
The Financial Select Sector SPDR Fund (XLF) has shown surprising strength recently, driven by impressive earnings reports from major banks like JPMorgan Chase & Co. (JPM), Bank of America Corp. (BAC) and Citigroup Inc. (C). Despite heightened market volatility tied to escalating trade war tensions, bank stocks and the ETFs that hold them have managed to outperform the S&P 500 in the first quarter of 2025—thanks largely to a surge in investor trading activity. Fueled by tariff threats and fears of slower global growth, uncertainty in the markets has led to increased trading volume across asset classes, boosting banks' revenue from their trading desks and capital markets divisions. JPMorgan, for example, reported a strong uptick in equity and fixed-income trading revenues, while Citigroup and Bank of America also posted better-than-expected results from their trading operations. Investors navigating choppy markets tend to rotate more frequently across sectors and asset classes, creating fertile ground for trading-related profits. This has given big banks an edge during an otherwise mixed earnings season. Rising short-term interest rates and a relatively steep yield curve have also helped support the big banks' net interest income, further fueling profitability. The financial giants may continue to profit from trading activity and the current rate environment, but uncertainty over tariffs continues to cloud the 2025 outlook. Despite recent strength, bank stocks and broader financial sector ETFs like XLF face mounting risks if current trade disputes escalate and push the U.S. economy into a recession later in 2025. A deepening trade war could dampen business and consumer confidence, reduce global trade flows and ultimately weaken credit demand—all of which would weigh heavily on bank profitability. Loan growth, a key earnings driver for banks, could slow significantly if businesses pull back on investment and consumers cut spending. Recessionary conditions may also trigger a rise in loan delinquencies and defaults, particularly in sectors sensitive to economic downturns, such as commercial real estate, consumer credit and small business lending. This would force banks to increase loan loss provisions, directly cutting into profits. Lower interest rates—likely if the Federal Reserve shifts to an accommodative stance in response to weakening economic data—could further pressure banks' net interest margins, which have already come under scrutiny in past downturns. Financials are also highly cyclical by nature, making them more vulnerable than defensive sectors during periods of economic contraction. In such an environment, investor sentiment toward financial ETFs like XLF could turn negative, leading to underperformance relative to the broader market. While trading revenue has been a bright spot, it's not enough to offset the structural challenges banks face in a downturn, making the sector increasingly vulnerable should macroeconomic risks | © Copyright 2025 All rights reserved
