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Financial Select Sector SPDR ETF (XLF)

  • Mar. 14, 2013, 5:14 PM
    After hours movers in the banks: JPM -2.5% and GS -2.1% after the two had their capital proposals approved but were asked to submit new plans "to address weakness in their capital planning processes." WFC +0.4%, BAC +3.8% after no dividend hike, but a whopping $10.5B in share repurchases and redemption of high-yielding preferreds. Morgan Stanley +0.9%. The XLF +0.1%.
  • Mar. 8, 2013, 2:59 PM
    A check of sector performance YTD finds financials (XLF), consumer discretionary (XLY), healthcare (XLV), consumer staples (XLP), energy (XLE), and industrials (XLI) all ahead of SPY's 9% gain. Utilities (XLU) are lagging just a bit, but the biggest drag is tech (XLK), up 4.9%. Not bad considering Apple's 19% decline.
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  • Mar. 8, 2013, 7:40 AM
    A check of the largest banks premarket after last night's stress test results: C +2.1%, JPM -0.8%, BAC +0.3%, WFC +0.5%, MS -1.6%, GS -0.3%. The XLF +0.6%.
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  • Mar. 7, 2013, 4:37 PM
    Fed Stress Tests: Ally Financial is the only bank not meeting the Fed standards.  All of the other 18 holding companies showed a Tier 1 Common Ratio higher than 5% under the central bank's severe loss scenario.
  • Mar. 7, 2013, 3:37 PM
    A number of states are investigating the usual banking suspects for possibly assisting debt collectors in collecting against faulty judgements, according to sources. As with the recently-settled mortgage charges, the probe focuses on the banks' poor paperwork and weak tracking of the debts as they were sold to different buyers. 
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  • Mar. 7, 2013, 11:01 AM
    The big U.S. banks are considering defying the Fed and announcing capital return plans shortly after stress tests are released this afternoon, reports Bloomberg. The Fed wants the lenders to wait another week, but bank lawyers worry the plans will leak out. It's under discussion, JPM CFO Lake told an investor conference (transcript) Tuesday. XLF +0.6%.
  • Mar. 6, 2013, 10:57 AM
    All 17 bank holding companies subject to Fed stress tests will pass the exam, says Credit Suisse's Moshe Orenbuch (results due Thursday). He thus sees payout ratios for the group rising to 64% of earnings this year from 36% in 2012, with BofA (BAC), Citigroup (C), and Regions Financial (RF) getting the biggest bump. Morgan Stanley (MS) and SunTrust (STI) should also see sizable increases.
  • Mar. 4, 2013, 11:55 AM
    Expect gradual, but not outsized jumps in capital returns from the banks this year, says Goldman (stress tests results are due Thursday, capital return decisions due March 14). Management teams are likely to be conservative in their requests from the Fed as "taking a mulligan" - i.e., resubmitting a plan after being shot down - is not seen as a viable option.
  • Feb. 27, 2013, 8:08 AM
    Those believing in strong economic recovery may have interest in Ken Heebner's CGM Focus Fund. Heebner was short $300M in Treasurys (21% of fund) at year's end, up from $190M at the end of Q3, and $80M at the end of June. Most of the rest of the fund is divided between the banks and homebuilders. TLT -2.1%, XLF +5.9%, XHB +4.4%, S&P 500 +5.3% YTD.
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  • Feb. 22, 2013, 2:34 PM
    Fat mortgage profits drove earnings at financials last quarter, but maybe not this one. Compass Point estimates gain-on-sale margins - the amount lenders make packaging and selling mortgages - could be down 40% in Q1. It's not just the big banks getting hurt. Profits at originators like FBC, NSM, PMT, EVER, and PHH could be most damaged, says Compass Point.
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  • Feb. 21, 2013, 10:52 AM
    Strong performance in the financial sector (XLF) since last summer has been almost completely concentrated in the big caps, says Bespoke, but small and mid-cap financials have begun to show relative life over the past couple of weeks. Another strong sector - materials (XLB) - has been led by the smaller stocks, but everything has fallen off a cliff recently.
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  • Feb. 20, 2013, 7:07 AM
    The average-loan-to-deposit ratio at the 8 largest U.S. banks fell to 84% in Q4 from 87% a year earlier and 101% in 2007, according to Credit Suisse. At just 61%, JPMorgan (JPM) had the lowest ratio (now we know why the London Whale was so busy; who's putting that money to work now?). "Bankers out there are drowning in liquidity," says the ABA VP. "We're dying to make loans."
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  • Feb. 19, 2013, 11:42 AM
    The technicians call it resistance and the financial sector (XLF, KRE) is up against it in a big way, says BAML (h/t John Melloy).
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  • Feb. 15, 2013, 1:10 PM
    While thinking about the XLF brings to mind the big banks, Berkshire Hathaway (BRK.B) has climbed to become the ETFs 2nd-largest holding at 8.32%, just behind JPMorgan at 8.6%. Berkshire also ranks 2nd in the global financial ETF (IXG) - which allocates 3.29% of the fund to the stock, just behind HSBC.
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  • Feb. 15, 2013, 9:32 AM
    New FASB proposals could give banks more room to value certain assets on their books with models, rather than market values. The proposals would also eliminate the perverse DVA adjustment, in which banks record a profit as their credit situation worsens (and a loss as it improves). Stakeholder comments are due by May 15.
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  • Feb. 15, 2013, 7:38 AM
    "The Goldilocks era of post-crisis M&A has never been an if, but a when," says JPMorgan (JPM) vice-chair James Lee. "CEOs are declaring that day has come." Including the Berkshire buy, $40B in deals were announced yesterday and $140B this month. Transaction volume is up 27% Y/Y vs. an 8% slump for 2012. It should mean sweet profits for the newly lean banks.
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XLF Description
The Financial Select Sector SPDR® Fund, before expenses, seeks to closely match the returns and characteristics of the Financial Select Sector Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
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Sector: Financial
Country: United States
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