SPDR S&P Bank ETF (KBE) - NYSEARCA
  • Fri, Jun. 24, 11:58 AM
    • The Too Big To Fail lenders are naturally among the day's big losers following the U.K. vote to leave the EU, but losses in the financial sector are wide and deep as - among other things - interest rates look to be a lot lower for a lot longer.
    • Among asset managers, Invesco (IVZ -10.8%) - with a sizable U.K. exposure - is faring about the worst. WisdomTree (WETF -7.8%) takes a hit as the yen is the solo currency surging against the dollar, reducing demand for its popular hedged Japan ETF.
    • It's wait till next year (or even 2018 if you believe short-term rate futures markets) for rate hikes, meaning regional lenders can't celebrate their passing of the Fed stress tests last night. Regions (RF -7.8%), KeyCorp (KEY -6.4%), PNC Financial (PNC -5.5%), U.S. Bancorp (USB -4.2%), BB&T (BBT -5.1%).
    • Even lower rates put even more pressure on the business models of the life insurers: MetLife (MET -8.8%), Prudential (PRU -7.7%), Lincoln National (LNC -9.9%), Voya (VOYA -7%). Online brokers too: E*Trade (ETFC -9.4%), Schwab (SCHW -9.5%).
    • ETFs: KRE, KBE, IAT, KBWB, QABA, KBWR, KRU, KRS, WDRW, DPST
    | Fri, Jun. 24, 11:58 AM | 6 Comments
  • Fri, Jun. 24, 5:22 AM
    | Fri, Jun. 24, 5:22 AM | 105 Comments
  • Mon, Jun. 20, 3:17 PM
    • The deluge is set to start 30 minutes after the market closes on Thursday and will have to compete with Brexit exit polls for breathless news coverage.
    • As for the lenders, the Fed will first release the results from the annual stress tests and minute later the banks will disclose how they graded themselves. The results of the CCAR - at which banks' requests for capital returns will or won't be greenlighted - will come in one week later.
    • Investors will want to know if the Fed - feeling more comfortable with capital levels - will continue the trend of allowing gradual increases in payouts - they were at 75% of profits last year, and some are hoping for an increase to 80% this year.
    • Of course, even "A" grades on stress tests would likely more than counterbalanced by a "leave" vote coming from the U.K. If this weekend's polls are any indication, a decision to leave is looking less and less likely.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCF, KBE, KRE
    | Mon, Jun. 20, 3:17 PM | 11 Comments
  • Fri, Jun. 17, 6:56 PM
    • SPDR Russell 2000 ETF (NYSEARCA:TWOK$0.2975. 30-Day Sec yield of 1.56%.
    • SPDR S&P 500 Buyback ETF (NYSEARCA:SPYB$0.1817. 30-Day Sec yield of 1.60%.
    • SPDR S&P 400 Mid Cap Growth ETF (NYSEARCA:MDYG$0.3426. 30-Day Sec yield of 1.11%.
    • SPDR Russell 2000 Low Vol ETF (NYSEARCA:SMLV$0.4980. 30-Day Sec yield of 2.72%.
    • SPDR Global Dow ETF (NYSEARCA:DGT$0.6700. 30-Day Sec yield of 2.59%.
    • SPDR S&P Bank ETF (NYSEARCA:KBE$0.1460. 30-Day Sec yield of 1.88%.
    • SPDR S&P Capital Markets ETF (NYSEARCA:KCE$0.2379. 30-Day Sec yield of 2.36%.
    • SPDR S&P Insurance ETF (NYSEARCA:KIE$0.2803. 30-Day Sec yield of 1.53%.
    • Payable June 27; for shareholders of record June 21; ex-div June 17. 30-Day Sec yield as of 6/16/16.
    | Fri, Jun. 17, 6:56 PM
  • Wed, Jun. 15, 3:17 PM
    • Having already shed value in June as expectations for rate hikes evaporated, the financial sector (XLF +0.7%) is showing relative strength following the FOMC's standing pat and dialing back expectations for the future level of the Fed Funds rate.
    • The S&P 500 is higher by just half the amount of the financials.
    • Within financials, the banks (KBE +1.1%), (KRE +1.1%) are particularly strong, led by Bank of America (BAC +1.5%), Morgan Stanley (MS +1.3%), Citigroup (C +1%), BB&T (BBT +1.2%), Fifth Third (FITB +2.2%), SunTrust (STI +1.4%), Zion (ZION +1.3%).
    | Wed, Jun. 15, 3:17 PM | 10 Comments
  • Tue, Jun. 14, 3:48 PM
    • The S&P 500 is down just 0.25%, but the financial sector (XLF -1.5%) is taking a far larger beating as the idea of higher interest rates fades, with German 10-year yields falling below zero, and the U.S. 10-year Treasury yield within sight of its all-time low. KBE -2.3%, KRE -2.3%
    • The FOMC concludes its two-day policy meeting tomorrow, at which updated economic projections and dots will be unveiled, along with a Janet Yellen press conference.
    • How much of the panic into fixed-income is due to concern about the U.K. exiting the EU will become evident next Thursday night as that country's Brexit votes are tallied.
    • Bank of America (BAC -2.5%), Citigroup (C -3.1%), Wells Fargo (WFC -2.5%), Regions Financial (RF -2.9%), KeyCorp (KEY -3.7%), PNC Financial (PNC -2.4%), Fifth Third (FITB -2.6%), SunTrust (STI -2.8%), E*Trade (ETFC -2.6%), MetLife (MET -1.6%), Prudential (PRU -1.8%), BNY Mellon (BK -2%)
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCF
    | Tue, Jun. 14, 3:48 PM | 89 Comments
  • Fri, Jun. 3, 9:47 AM
    • At the moment, it's looking like "wait till next year," for the higher interest rates much of the yield-starved financial sector has been waiting for. This morning's disappointing jobs numbers has traders quickly reversing bets on a rate hike this summer.
    • Meanwhile, the 10-year Treasury yield has crumbled to a two-month low of 1.70%.
    • The XLF is down 1.9%, leading the S&P 500's 0.5% decline. The SPDR KBW Bank ETF (KBE -3.5%), the SPDR Regional Banking ETF (KRE -3.4%).
    • Among the Too Big To Fail names, Bank of America (BAC -4.7%) and Citigroup (C -4.8%) are hardest hit. In regionals, Regions Financial (RF -4.4%), KeyCorp (KEY -4%), BB&T (BBT -3.3%), Fifth Third (FITB -4.4%).
    • State Street (STT -3.5%), Northern Trust (NTRS -3.8%), Schwab (SCHW -5.4%), E*Trade (ETFC -5.8%), Ameritrade (AMTD -5.5%), MetLife (MET -3.6%), Prudential (PRU -3.2%), Lincoln Financial (LNC -4.1%)
    • ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, FNCL, SEF, FXO, KBWB, QABA, KBWR, RYF, FINU, KRU, RWW, XLFS, FINZ, KRS, JHMF, WDRW, FAZZ, DPST, FNCF
    | Fri, Jun. 3, 9:47 AM | 140 Comments
  • Tue, May 24, 10:22 AM
    • Stocks had already started the morning nicely in the green, but a blowout new home sales number for April has the homebuilders higher by about 2.5%, and the major indexes up by more than 1%.
    • It's also got traders upping bets on a June rate hike, with another move to follow before year-end. That's boosting the yield-starved financials (XLF +1.5%), particularly the banks (KBE +2%).
    • Among the financial movers: Bank of America (BAC +1.4%), JPMorgan (JPM +1.9%), Regions Financial (RF +1.8%), Fifth Third (FITB +2.1%), E*Trade (ETFC +2.9%), Interactive Brokers (IBKR +2.6%), MetLife (MET +1.8%), Prudential (PRU +2.2%), Lincoln National (LNC +1.8%), State Street (STT +2.1%)
    | Tue, May 24, 10:22 AM | 21 Comments
  • Fri, May 20, 12:11 PM
    • "The days of negative provisioning are pretty much dead," says D.A. Davidson's Kevin Reevey. "Now, they're going to have to take provisioning expense and build up reserves based on loan growth."
    • Total bank loan loss reserves were north of $250B in Q1 2010, before falling to about $24B at the end of last year. Amid the energy crash, they edged higher in Q1. Naturally, those lenders with the most exposure to energy posted some of the largest reserve increases in Q1. "It wasn't just the levels that [oil] went to, it was the speed at which prices dropped," says Peter Guilfoile, chief credit officer at one of those banks - Comerica (NYSE:CMA). Colorado-based National Bank Holdings (NYSE:NBHC) posted the largest Q/Q increase in reserves-to-loans, jumping 39 basis points to 1.43%.
    • Meanwhile, there were plenty of other banks which actually saw declines in that ratio, notably Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), and U.S. Bancorp (NYSE:USB). These and other lenders in that bucket can thank denominator of that ratio growing quickly enough to offset reserve builds.
    • Source: SNL Financial's Zach Fox and Venkatesh Iyer
    • ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, FNCL, SEF, FXO, KBWB, QABA, KBWR, RYF, FINU, KRU, RWW, XLFS, FINZ, KRS, WDRW, DPST, FAZZ
    | Fri, May 20, 12:11 PM | 15 Comments
  • Wed, May 18, 2:11 PM
    • Turns out those hawkish Fed speakers yesterday were prepping markets for today's FOMC minutes, which show "most" on the committee as expecting the next rate hike to be in June.
    • To review: At the start of the week, short-term rate markets had been expecting less than a 5% chance of tighter policy in June.
    • Up 100 points earlier, the Dow (NYSEARCA:DIA) has turned negative, as has the S&P 500 (NYSEARCA:SPY). The Nasdaq (NASDAQ:QQQ) is holding onto a slim gain. Yield-starved financials (XLF, KRE, KBE) are holding onto very big gains.
    • The 10-year Treasury yield is up six basis points to 1.84%. TLT -1.1%
    | Wed, May 18, 2:11 PM | 40 Comments
  • Wed, May 18, 1:08 PM
    • The meme of rates lower for longer has been stood on its head in the last 24 hours thanks to some decent economic data, but also surprisingly hawkish Fedspeak yesterday.
    • The fixed-income world now believes remarks from the Fed's Williams and Lockhart yesterday may have been a preview of what we'll get when the real power speaks tomorrow - Fischer and Dudley - and then on May 27, when Janet Yellen gives a speech.
    • Up at 2 ET are the minutes from the FOMC's April meeting.
    • The 10-year yield is higher by five basis points to 1.82% and short-term rate markets have upped expectations for a Fed move this year.
    • XLF +1.85%, KBE +3.15%, KRE +3.3%
    • Bank of America (BAC +3.7%), Citigroup (C +4.2%), JPMorgan (JPM +3.2%), Wells Fargo (WFC +2.1%), U.S. Bancorp (USB +2.1%), Regions (RF +3.3%), KeyCorp (KEY +3.7%), PNC Financial (PNC +2.7%), Fifth Third (FITB +3.7%), Capital One (COF +1.9%), E*Trade (ETFC +4.4%), Schwab (SCHW +4.8%), MetLife (MET +2.9%), Prudential (PRU +3.4%), Lincoln National (LNC +4.2%), BNY Mellon (BK +2.3%), Northern Trust (NTRS +2.9%)
    | Wed, May 18, 1:08 PM | 75 Comments
  • Thu, May 5, 10:20 AM
    • Mandatory arbitration clauses are the norm across products like credit cards, student loans, prepaid cards, and payday loans, and they're used by lenders to block class-action suits and force private negotiations to settle disputes.
    • The proposal which would prohibit such moves by banks is expected to take effect next year unless the up-in-arms bank lobby can stop it.
    • "Signing up for a credit card or opening a bank account can often mean signing away your right to take the company to court if things go wrong,” says CFPB boss Richard Cordray.
    • ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, FNCL, SEF, FXO, KBWB, QABA, KBWR, RYF, FINU, KRU, RWW, XLFS, FINZ, KRS, FAZZ
    | Thu, May 5, 10:20 AM | 1 Comment
  • Wed, Apr. 20, 2:33 PM
    • The KBW Bank Index (ETF: KBE) is now up well over 20% since bottoming on February 11. In the period from July 22 to that February bottom, it had declined nearly 30%.
    • Markets do look forward - the bull move hasn't been contained by a string of weak Q1 earnings reports from the nation's largest banks over the past week.
    • For technicians who like to see confirmations, the run higher has them excited about the prospects for the broader market.
    • J.C. Parets: "Do you know how many bull markets we’ve seen for U.S. stocks without the participation of the banks? Zero."
    • Now read: What Have 'We' Been Doing All This Time? (April 20)
    | Wed, Apr. 20, 2:33 PM
  • Wed, Mar. 30, 3:44 PM
    • Nobody wants banks, writes Ken Brown in the WSJ, but everybody wants commercial real estate. The result: Bank yields are higher than that of CRE.
    • A report from BAML says the big banks have boosted dividends faster than any other sector, and the total cash yield to owners, including buybacks, is at its strongest level since 2003. "Both are signs of strength," writes Brown, "though investors refuse to believe them."
    • On the other hand, "Real estate is not cheap anymore," says Green Street's Peter Rothemund. One particular warning sign: Foreigners flooded the market last year, buying a net $57B of U.S. property vs. an average of just $3B annually for the previous five years.
    • ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, SEF, FNCL, FXO, KBWB, QABA, RYF, FINU, KBWR, KRU, RWW, FINZ, KRS, XLFS
    | Wed, Mar. 30, 3:44 PM | 1 Comment
  • Thu, Mar. 24, 10:43 AM
    • Oil's lower by 2.9% today and about 10% for the week, but it's the financial sector (XLF -1.3%) leading the S&P 500's 0.5% decline today. This even as Jim Bullard becomes the latest Fed speaker to more or less disavow last week's dovish FOMC meeting result, and suggest higher rates could come as soon as April's get-together.
    • Morgan Stanley (MS -2.9%), Citigroup (C -2.5%), BB&T (BBT -1.3%), U.S. Bancorp (USB -1.3%), MetLife (MET -2.8%), Prudential (PRU -3.5%)
    • ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, SEF, FNCL, FXO, KBWB, QABA, RYF, FINU, KBWR, KRU, RWW, FINZ, KRS, XLFS
    | Thu, Mar. 24, 10:43 AM | 14 Comments
  • Fri, Mar. 18, 4:20 PM
    | Fri, Mar. 18, 4:20 PM
KBE Description
The SPDR® S&P® Bank ETF, before expenses, seeks to closely match the returns and characteristics of the S&P® Banks Select Industry Index (ticker: SPSIBK). Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
See more details on sponsor's website
Sector: Financial
Country: United States
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