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Financial Select Sector SPDR ETF (XLF)

  • Nov. 29, 2011, 3:21 PM
    Just as U.S. banks are trying to aggressively cut their eurozone exposure, foreign banks are doing the same for their U.S. exposure. Deutsche considers this a positive for U.S. banks, to the extent it allows them to acquire assets (I, II) at reasonable prices. Banco Santander (STD) still holds $56B in U.S. loans; Banco Bilbao (BBVA) $45B; and Deutsche Bank (DB) $32B.
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  • Nov. 29, 2011, 11:34 AM
    Nouriel hits the FT, calling for Italy's debt to be restructured as public debt of 120% of GDP, real rates of 5%, and zero GDP growth add up to a toxic mix. Mario Monti may do a better job than Berlusconi, but he has no ability to alter the laws of math. Contrarian alert: Wasn't Roubini calling for U.S. bank nationalizations in 2009 shortly before the XLF nearly tripled?
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  • Nov. 28, 2011, 12:35 PM
    Morgan Stanley cuts its outlook and price targets on big U.S. banks, citing economic concerns in the U.S. and Europe. Most notably, it cuts Citigroup (C +5.8%) to Equal Weight from Overweight and trims its price target to $30 from $45. Cut to Underweight: STT +1.7%, BK +1.4%, NTRS +1.4%. But for today at least, bank stocks (XLF +3%) are rallying.
  • Nov. 28, 2011, 8:18 AM
    Long and wrong on the financials in 2011, Dick Bove pens a letter discussing his mistakes. Turns out he didn't make many, it's just that investors have yet to see the light. He remains wildly bullish on the big banks. Wall Street's a big industry, are there any other bank analysts?
  • Nov. 23, 2011, 11:10 AM
    Bank of America (BAC -3.4%) scrapes up against its 52-week low of $5.13 in line with a general selloff, but also suffering from the new round of stress tests announced by the Fed. The seemingly tough exam could force BofA into a large capital raise at just the time its stock price won't allow it (Soros' reflexivity comes to mind).
  • Nov. 22, 2011, 4:34 PM
    The Fed launches new bank stress tests in which lenders will be forced to model a severe eurozone recession - a 6.9% decline in real GDP - and a skying domestic unemployment rate. In addition, the 6 largest U.S. banks will need to estimate losses "stemming from a hypothetical global market shock," similar to that of late autumn 2008.
  • Nov. 18, 2011, 2:55 PM
    S&P will update the credit ratings on the world's 30 largest banks before Christmas as the agency tries to apply updated methodologies. Watch out for downside surprises, but one analyst sees the move as maybe signalling a bottom in the sector - ratings agencies tend to alter their process after the market has already made its move down, says Ryan Brist.
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  • Nov. 14, 2011, 12:08 PM
    Newt Gingrich joins the list of GOP politicians banging the drum to break up the big banks, saying he supports "very decisive reforms" in the industry. He plays the Glass-Steagall card in a populist move that appears to be slated by the Repubs as a general election topic: "We should probably reestablish dividing up the big banks into a banking function and an investment function and separating them out again."
  • Nov. 2, 2011, 9:56 AM
    Financials and energy stocks are among this morning's leading sectors after dragging the bottom in the prior session. Financials fell almost 5% yesterday but are up sharply today (XLF +1.8%), led by Mastercard (MA +8.3%) after reporting a strong Q3; Visa (V +2.9%) shares also jump. Energy stocks (XLE +1.9%) also rise after yesterday's 3% loss.
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  • Oct. 27, 2011, 9:42 AM
    European banks explode higher at the open on news of the agreement to recapitalize the region’s banks. Deutsche Bank (DB) +15.4%, Barclays (BCS) +16.4%, Royal Bank of Scotland (RBS) +12% lead the way as shorts run for the hills. U.S. banks (XLF +4.6%) ride the momentum: BAC +6.4%, JPM +7.7%, C +8.5%, MS +11%, GS +6.3%.
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  • Oct. 25, 2011, 10:25 AM
    The financial sector (XLF -2%) is the day's worst early performer amid see-saw headlines from Europe. Regional banks (KRE -2.1%) such as Regions (RF -7.2%) and Zions (ZION -7.2%), plus asset managers like T. Rowe Price (TROW -7.5%), swoon after stressed quarterly results. Among Dow financials: BAC -1.6%, JPM -2.1%, TRV -2%, AXP -0.3%.
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  • Oct. 21, 2011, 10:15 AM
    U.S. bank stocks (XLF +2%) surge in early trading, responding to rising sentiment that Europe is moving forward with talks. Among financials in the Dow: BAC +2.3%, JPM +1.9%, AXP +2.9%, TRV +2.6%. Also: AIG +3.4%, MET +2.9%, MS +2.5%. A noticeable outlier is SunTrust (STI -5.3%), the S&P's worst performer following its earnings release.
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  • Oct. 18, 2011, 8:31 AM
    After sharp falls in the wake of their weak earnings (i, ii) announcements, both Bank of America (BAC +2%) and Goldman Sachs (GS +1.3%) turn green. Word of a big Goldman loss has been bandied about for weeks, and wags see fit to make cracks about its horrid performance. At some point, the bad news has to be priced in.
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  • Oct. 18, 2011, 8:22 AM
    Government officials move forward on an oft-floated plan to allow "underwater" homeowners to refinance at lower rates, now trying to get the TBTFs on board by tying it to a "fraudclosure" settlement. Corelogic estimates 8M homeowners could reduce their mortgage rate by at least 100 bps.
  • Oct. 15, 2011, 1:17 PM
    Barron's rings the bell for financials (XLF), (KBE), saying business is improving even as their stocks go in the opposite direction. The TBTF's, regionals (KRE), trust banks, life insurers - all are cheap based on any number of metrics. "No catalyst?" How about better-than-expected earnings, an uptick in the economy, and even some loan growth? "There could be a stampede back into these stocks," says fund manager Matt Lindenbaum.
  • Oct. 13, 2011, 11:21 AM
    JPMorgan (JPM -6%) continues moving lower following its Q3 report, and is taking other banks down with it (XLF -3.6%). Avi Salzman considers this justified, given how the decline in JPMorgan's return on equity bodes poorly for its peers. But ISI thinks shares are still cheap, noting they trade at 8x its 2013 EPS estimate. (more)
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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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