Thu, Jul. 14, 2:43 PM
- Moving past the overseas macro, today's modest rally is being led by the financial sector (XLF +1%), particularly the banks (KRE +1.8%), (KBE +1.8%) after JPMorgan beat estimates.
- Also helping is another five basis points move upward in the 10-year Treasury yield to 1.53%. Among the yield-starved names applauding: Prudential (PRU +3.1%), Lincoln National (LNC +4.7%), E*Trade (ETFC +1.8%), Schwab (SCHW +1.9%), State Street (STT +2.5%), MetLife (MET +5.2%).
- The Dow is up 0.8%, the S&P 500 0.55%, and the Nasdaq 0.6%.
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
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%)
Dec. 17, 2015, 7:43 AM
- Based upon the company's preliminary assessment, for the 18-year period for which it has accessible records, about $200M or more of expenses may have bee incorrectly billed to asset servicing clients in the U.S.
- Deeply regretting the matter, State Street (NYSE:STT) after the probe is complete wio compensate affected clients fully, and make necessary changes to its billing practices.
- Shares -1.4% premarket
Mar. 6, 2015, 7:46 AM
- State Street (NYSE:STT) easily passed the stress test, but its Tier 1 common capital ratio under the Fed's severely adverse scenario fell to 11.8% vs. 13.3% last year, maybe hitting hopes for a more sizable increase in the buyback and dividend this year. CCAR results are due on Wednesday.
- KBW downgrades to Market Perform from Outperform with price target cut to $79 from $84, and JPMorgan cuts to Underweight from Neutral.
- Shares -1.4% premarket
Feb. 26, 2015, 8:37 AM
- Adjusting based on the flatter yield curve, Credit Suisse analyst A. Serrao cuts 2015-2018 EPS estimates to $5.13, $5.65, $6.19 and $6.84 from $5.14, $5.89, $6.35, and $6.91, and downgrades State Street (NYSE:STT) to Neutral from Outperform.
- Ctiigroup downgrades to Neutral from Buy.
- Shares -1.7% premarket
Feb. 6, 2015, 9:50 AM
- Financials have been mercilessly pounded in 2015 as hopes for higher interest rates looked like they might be dashed yet again, but today's blowout jobs number - firmly putting a June rate hike on the table - has brought in the dip-buyers.
- The major averages are flat, but the XLF is up 1.4%. The Regional Bank ETF (KRE +2%) and the Bank ETF (KBE +2.1%) are doing even better.
- Among the yield-starved banking names: Bank of America (BAC +3.1%), JPMorgan (JPM +2.6%), Citigroup (C +2%), Regions Financial (RF +4%), KeyCorp (KEY +3%), PNC Financial (PNC +2.9%), SunTrust (STI +2.3%), Zions (ZION +3.6%), Synovus (SNV +2.3%).
- Insurers: MetLife (MET +2%), Prudential (PRU +3.2%), Lincoln National (LNC +4.6%). AIG (AIG +1.5%).
- Trust banks: BNY Mellon (BK +2.7%) State Street (STT +1.9%), Northern Trust (NTRS +2.3%).
- Online brokers (currently getting killed on money-market fee rebates): Schwab (SCHW +4.5%), TD Ameritrade (AMTD +3.5%), E*Trade (ETFC +2.1%).
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, IAI, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KRU, RWW, KBWR, RYF, KBWP, KBWI, PSCF, FINZ, KRS
Dec. 5, 2014, 10:06 AM
- Among those counting on higher interest rates to boost profits are banks, insurers, and online brokers, and all are outliers to the upside in today's session after a strong November jobs report has rate hike expectations on the rise. The XLF is up 1%.
- TBTFs: Bank of America (BAC +2.1%), Citigroup (C +1.8%), JPMorgan (JPM +2.2%), Wells Fargo (WFC +1.2%)
- Regionals (KRE +1.9%): Regions Financial (RF +2.6%), KeyCorp (KEY +2.3%), Huntington (HBAN +1.5%), BB&T (BBT +1.6%), Zions (ZION +4%)
- Custodials: BNY Mellon (BNY), State Street (STT +1.6%), Northern Trust (NTRS +1.8%)
- Life insurers: MetLife (MET +2.1%), Prudential (PRU +2.5%), Lincoln National (LNC +2.3%)
- Online brokers: Schwab (SCHW +3.8%), E*Trade (ETFC +3%), Ameritrade (AMTD +2.7%)
- Previously: Short end of yield curve on the move after jobs number (Dec. 5, 2014)
- Previously: Bonds and dollar higher, gold slumps after strong jobs report (Dec. 5, 2014)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, IAI, SEF, IYG, IAK, FXO, FNCL, KBWB, RKH, QABA, FINU, KRU, RWW, KBWR, RYF, KBWP, KBWI, PSCF, FINZ, KRS
Sep. 9, 2014, 12:24 PM
- The Fed intends to impose a capital surcharge on banks tougher than the international standard, according to Fed Governor Daniel Tarullo's prepared remarks for the Senate Banking Committee. Those banks with heavier reliance on short-term funding like overnight loans - i.e. Goldman Sachs (GS -1%) and Morgan Stanley (MS -1.8%) - will likely face even more rigorous requirements.
- Officials haven't yet decided on a number, but reportedly are considering as much as 200 basis points more than the top range of 2.5% of risk-weighted assets agreed to by international regulators.
- What's not yet clear is who would need to raise capital to meet the new, tougher standard.
- Citigroup (C -1%), Bank of America (BAC -0.6%), JPMorgan (JPM -1.3%), Wells Fargo (WFC -0.4%), State Street (STT -1.1%), Bank of New York Mellon (BK -0.9%)
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
Jun. 30, 2014, 9:50 AM
- Having exited his holdings in State Street (STT +0.2%) late last year, Nelson Peltz has set his sights on Bank of New York Mellon (BK +3.8%), with his Trian Fund Management disclosing a 9.33M share stake in the company.
- Partly in response to pressure from Peltz, State Street is perceived to have been more aggressive than Mellon Bank in cutting costs, selling off non-core units, and in prioritizing capital returns over acquisitions. The stocks of the two companies, however, are each up about the same amount since Peltz began pushing for change at State Street in late 2011.
Jun. 17, 2014, 12:30 PM
- Bank of New York (BK +2.1%), State Street (STT +2.4%), and Northern Trust (NTRS +2.7%) are all moving sharply higher in lockstep as the Fed begins its 2-day policy meeting.
- Earnings at all three have been weighed down by ZIRP, and with new "dots" (representing the timing of rate hikes) coming from the FOMC tomorrow, perhaps the trio are anticipating a more hawkish view. Following a fast CPI report earlier today, the 10-year Treasury yield is higher by four basis points to 2.64% and the first Fed rate hike is priced in for Spring 2015.
- Previously: Treasury prices slip after fast CPI report
Oct. 16, 2013, 12:34 PM
- BNY Mellon (BK +0.6%) lags the market and its trust bank competitors State Street (STT +2.1%) and Northern Trust (NTRS +2.5%) after Q3 results (from BK and NTRS) this morning.
- Mellon's adjusted net income of $706M was off about 2% from a year ago, with revenue off 7%. Assets under custody of $27.4T gained 4%. Foreign exchange fees of $160M fell 12%. Net interest revenue of $772M rose 3%, though NIM fell 4 basis points to 1.16%.
- Northern Trust adjusted net income of $173.9M was off 2.7% Y/Y, with revenue up 8%. Assets under custody of $5.2T rose 10%. Noninterest income (77% of total) rose 11%. Trust, investment, and other servicing fees rose 8%. Foreign exchange income of $62.8M rose 43%. Net interest income of $244.8M fell 5% as net interest margin declined 7 basis points to 1.14%.
- Previous: BNY Mellon deals with accusations of over-charging clients for FX activity.
Jul. 17, 2013, 10:28 AMNorthern Trust (NTRS -2.9%) slips after missing earnings expectations, with Guggenheim's Marty Mosby pinning the blame on higher-than-anticipated expenses, particularly compensation which rose 4% Y/Y as staffing levels increased 3%. Larger rivals BNY Mellon (BK +2.7%) and State Street (STT +1.5%) have been more successful cutting costs amid barely visible interest rates. | Jul. 17, 2013, 10:28 AM
Jan. 18, 2013, 11:20 AM
More on State Street (STT +6.4%) Q4 earnings: It's a tale of two custodial banks as State Street continues its recent divergence from BNY Mellon. Net interest margin of 1.36% vs. 1.44% in Q3, 1.40% a year ago (BK declined 18 bps Y/Y to 1.09%). The firm continues cutting costs, announcing 630 job cuts in its SEC filing.| Jan. 18, 2013, 11:20 AM
Jan. 16, 2013, 12:39 PM
Moving lower in a mostly green financial sector is BNY Mellon (BK -2.8%) after its earnings report. Net interest margin wasn't pretty - declining to 1.09% from 1.20% in Q3 and 1.27% a year ago. No longer able to gouge customers on fx transactions, a custodial bank like BNY can't do a whole lot to offset declining margins. The good news: AUM posted a 10% rise. Someday ZIRP will end. State Street (STT) -1.4%.| Jan. 16, 2013, 12:39 PM | 3 Comments
Mar. 14, 2012, 1:42 PM