Mon, Jun. 22, 2:44 PM
- Financials sunk along with Treasury yields last week, but are seeing a strong bounce today alongside a ten basis point gain in the 10-year yield to 2.36%.
- The XLF is up 1.6% versus the S&P 500's 0.7% gain.
- Helping U.S. equity markets is movement toward a Greek debt deal which sent Europe's Stoxx 50 hurtling 4% higher on the session. Yields tumbled in the periphery, but are sharply higher in Germany as well as the U.S.
- Yield-sensitive Bank of America (BAC +1.8%) is leading the TBTF names higher. In regionals: PNC Financial (PCN -0.2%), KeyCorp (KEY +1.2%), Regions Financial (RF +1.4%), SunTrust (STI +1.3%), First Niagara (FNFG +1.2%).
- Life insurers: MetLife (MET +2%), Prudential (PRU +1.6%), Lincoln FInancial (LNC +1.4%). Online brokers: E*Trade (ETFC +3.3%), Schwab (SCHW +2.2%), Ameritrade (AMTD +1.3%).
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, KIE, IAT, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KBWR, KRU, RWW, RYF, KBWP, KBWI, FINZ, KRS
Tue, Jun. 16, 3:19 PM| Comment!
Fri, Jun. 5, 10:27 AM
- This morning's strong nonfarm payroll report may put to rest the idea of a continuing economic slowdown and puts on the table a rate hike maybe as soon as September.
- The 10-year Treasury yield is up nine basis points to 2.40%.
- The KRE +1.5%, KBE +1.6%, and the XLF +1.1% amid a flat S&P 500.
- Regional banks: Regions Financial (RF +3.3%), KeyCorp (KEY +2.5%), PNC Financial (PNC +1.9%), SunTrust (STI +2.3%), U.S. Bancorp (USB +2.2%), Zions (ZION +3.7%), First Niagara (FNFG +1.4%)
- Too Big Too Fails: Citigroup (C +2.2%), Bank of America (BAC +3.4%), JPMorgan (JPM +2.2%), Wells Fargo (WFC +1.9%)
- Life insurers: MetLife (MET +2.7%), Prudential (PRU +2.8%), Sun Life (SLF +1.9%), Lincoln Financial (LNC +2.5%)
- Online brokerage: Schwab (SCHW +3.8%), TD Ameritrade (AMTD +2.8%), E*Trade (ETFC +2.3%), Interactive Brokers (IBKR +2.5%)
- Previously: Jobs up 280K in May; UE rate ticks higher (June 5)
- Previously: Treasury yields surge amid strong job gains, boosted wage growth (June 5)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KBWR, KRU, RWW, RYF, FINZ, KRS
Wed, Mar. 18, 2:41 PM
- The Dow and S&P 500 have each turned more than 1% higher following after the Fed cuts its projections for GDP growth, inflation, and the pace of rate hikes, but the country's yield-starved lenders don't join the party.
- The KBE is down 0.5% and the KRE by 0.9%.
- Bank of America (BAC -0.2%), Citigroup (C +0.1%), Regions Financial (RF -1.1%), KeyCorp (KEY -0.9%), First Niagara (FNFG -1.6%), U.S. Bancorp (USB +0.1%), PNC Financial (PNC +0.3%).
- Others gasping for a yield above zero: Schwab (SCHW -1.5%), E*Trade (ETFC +0.1%), Ameritrade (AMTD -0.5%).
- Previously: FOMC drops "patient," but sends dovish signal (March 18)
- Previously: Stocks stage sharp turnaround, yields dive following dovish Fed news (March 18)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KRU, RWW, KBWR, RYF, FINZ, KRS
Wed, Feb. 18, 2:49 PM
- The financial sector had begun to turn around a dismal start to the year as February brought forth a string of hawkish Fed heads suggesting a June rate hike, but the XLF is lower by 0.8% after just-released FOMC minutes suggest markets and the hawks are getting ahead of themselves. KBE -1.7%, KRE -2%
- The TBTFs: BofA (BAC -2.2%), JPMorgan (JPM -1.4%), Wells Fargo (WFC -1.6%), Ciitgroup (C -0.8%)
- The regionals: Regions Financial (RF -1.6%), KeyCorp (KEY -1.6%), PNC Financial (PNC -1.3%), BB&T (BBT -1.5%), Fifth Third (FITB -1.6%), SunTrust (STI -1.7%), First Niagara (FNFG -2.1%), M&T (MTB -1.9%), U.S. Bancorp (USB -1.3%), First Horizon (FHN -2.7%).
- Online brokerage: Schwab (SCHW -2.3%), E*Trade (ETFC -1.7%), Ameritrade (AMTD -1.1%), Interactive Brokers (IBKR -0.9%).
- Previously: FOMC minutes: June rate hike not a slam dunk yet (Feb. 18)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, IAI, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KCE, KRU, RWW, KBWR, RYF, KBWC, FINZ, KRS
Nov. 14, 2014, 10:53 AM
- CEO Gary Crosby purchased 10K shares at $7.76 each on Wednesday, with Managing Director Joseph Saffire also buying 10K shares. Buying 6,514 shares on Tuesday was EVP, Retail Banking Mark Rendulic, with CFO Gregory Norwood buying 10K shares. Finally, board member Carlton Highsmith bought 15K shares on Monday.
- FNFG +4.5%, bringing its gain for the week to nearly 10%.
- Previously: First Niagara on the move after BB&T/Susquehanna deal
Nov. 12, 2014, 10:00 AM
- BB&T's deal to buy Susquehanna Bancshares for what looks to be about 1.7x tangible book value has investors wondering if the boosted M&A activity in general this year is going to make its way into the banking sector.
- There's not a lot of major movement in the smaller regional lenders at the moment, though, with the exception of First Niagara Financial (FNFG +4.9%). Its $38B of assets is easily digestible, and - after a rough year for the stock - its closing price last night of $7.51 is just 1.15x tangible book.
- Previously: BB&T buying Susquehanna Bancshares in $2.5B deal
Oct. 24, 2014, 9:15 AM
Mar. 20, 2014, 10:54 AM
- Much of the financial sector is lit up bright green, continuing to outperform following yesterday's suggestion by the FOMC and Janet Yellen that rate hikes could come sooner than expected. XLF +1.1%, KBE +1.6%, KRE +1.6%.
- At new 52-week or even multi-year highs are JPMorgan (JPM +2.3%), Wells Fargo (WFC +1.7%), Morgan Stanley (MS +1.4%), and Bank of America (BAC +1.6%).
- Regional lenders: U.S. Bancorp (USB +1%), Huntington (HBAN +1.5%), PNC (PNC +1.3%), BB&T (BBT +1.5%), Fifth Third (FITB +1.8%), First Niagara (FNFG +2.1%).
- Leading among the life insurers are Lincoln National (LNC +1.9%), Protective Life (PL +1.6%), Manulife (MFC +1.2%), and Sun Life (SLF +1.1%).
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, SEF, IYG, IAK, FXO, PFI, KBWB, RKH, QABA, FNCL, FINU, KRU, RWW, KBWR, RYF, PSCF, KBWI, KBWP, KRS, FINZ
Jan. 27, 2014, 1:20 PM
- RBC Capital says to "buy the dip" on First Niagara (FNFG -2.2%) after its post-earnings implosion on Friday, but not so fast, say another of other sell-siders.
- "Higher operating expenses ... will not be matched by revenue growth," says FBR, removing its Buy rating on the stock. "We consider the 4-5 year time line to achieve FNFG's ROA target of 115 bps-125 bps ROA too long."
- Jefferies too throws in the towel on its Buy rating. "Our Buy thesis rested on estimate stability via cost discipline and a long-term ROA improvement via balance sheet rotation, but both themes are no longer valid given elevated infrastructure investments ($250mm over next three years) and a slower loan growth forecast."
- KBW removes its Buy rating as well and Macquarie downgrades to Sell.
Jan. 24, 2014, 11:32 AM
- It's a financial crisis-type move for First Niagara Financial (FNFG -9.7%) after its Q4 earnings report as the bank guides for 2014 operating EPS of $0.72-$0.75 vs. expectations of $0.79.
- "We've been underperforming," (no longer interim) CEO Gary Crosby tells analysts. "A combination of higher staffing to execute projects and to operate the new product and service platforms, as well as higher technology and depreciation expenses and professional fees," will likely see expenses on the rise this year.
- Previous earnings coverage
Dec. 19, 2013, 3:21 PM
- "Mr. Crosby has done nothing to give us concern that he is not capable of running the bank on a going-forward basis, and we have confidence that he will demonstrate a strong leadership ability in taking the bank to the next level," says KBW's Damon DelMonte in a note to clients following First Niagara's (FNFG -4.4%) hiring of interim CEO Gary Crosby to be permanent CEO.
- DelMonte rates the stock a Buy with $12 price target.
- The stock's in the tank today as investors register disappointment an outsider was unable to be found to lead the bank, says DelMonte. Since Crosby took over in early March, the stock's ahead 22% (including today's decline), not far off the 26% gain in the KBW Regional Banking Index.
Dec. 19, 2013, 10:36 AM
Nov. 8, 2013, 10:41 AM
- Up sharply as interest rates fly higher (the 10-year is up 15 basis points to 2.75%) are the life insurers - all of whom have had their investment returns more than a little constrained by puny yields. IAK +2.4%
- MetLife (MET +5.9%), Prudential (PRU +4.5%), Lincoln National (LNC +6.8%), Hartford (HIG +3.1%).
- Also set to benefit from a steeper yield curve (if we're to believe their models) are the banks, and they're leading the S&P 500 higher. The TBTFs: Bank of America (BAC +3.3%), JPMorgan (JPM +3.1%), CItigroup (C +3.3%), Wells Fargo (WFC +2.6%). The regionals (KRE +3.4%): Huntington (HBAN +2.6%), Regions (RF +4.2%), PNC (PNC +2.8%), FIfth Third (FITB +3.4%), First Niagara (FNFG +2%), Keycorp (KEY +3.5%), Zions (ZION +4.1%), Comerica (CMA +3.1%).
- The XLF +1.9%.
- FInancial sector ETFs: FAS, XLF, FAZ, UYG, KRE, KBE, VFH, IYF, KIE, SEF, IAT, IAI, IYG, IAK, FXO, PFI, KBWB, RKH, QABA, RWW, FINU, RYF, KRU, KBWR, PSCF, KBWP, KBWI, KRS, FINZ, FNCL
Jul. 19, 2013, 10:48 AMMore on First Niagara Financial (FNFG +1.6%) Q2 earnings: Average loans up 8% (annualized) Q/Q, led by 11% gain in commercial loans. Net interest income of $269.4M up 4% Y/Y on flat NIM. Noninterest income flat Y/Y, up 7% sequentially, driven by wealth management and insurance gains. Allowance for loan losses rises to $183.7M from $172M; nonperforming assets to total assets flat at 0.51%. Search for CEO continues. (PR) | Comment!
Apr. 19, 2013, 5:32 PM
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