Financial Sector Stocks Push Higher Amid Market Volatility

Strategic Insights -

The Dow Jones Industrial Average is trading down 54 points (-0.3%) at 17,704 as of Thursday, July 2, 2015, 12:55 PM ET, with the NYSE advances/declines ratio sitting at 1,396 issues advancing vs. 1,580 declining with 168 unchanged. The Financial sector is currently down 0.3% versus the S&P 500, which is also down 0.3%. Top gainers within the sector include Xoom, up 22.1%, ACE, up 1.9%, Markel Corporation, up 1.9%, Chubb, up 1.6%, and Banco Santander Brasil SA/Brazil, up 1.1%. On the negative front, top decliners include Western Union, down 5.2%, Shinhan Financial Group, down 1.9%, Nomura Holdings, down 1.9%, ING Groep N.V, down 1.9%, and Regions Financial, down 1.8%.

Key Takeaways:

  • Grupo Financiero Santander Mexico SAB de CV (BSMX) is one of the companies pushing the Financial sector higher today, up $0.12 (1.3%) to $9.32 on light volume.
  • Credit Suisse Group (CS) is up $0.60 (2.1%) to $28.43 on average volume, with 913,566 shares exchanged hands as compared to its average daily volume of 1.2 million shares.
  • Deutsche Bank (DB) is up $0.20 (0.6%) to $31.35 on light volume, with 707,709 shares exchanged hands as compared to its average daily volume of 1.9 million shares.
  • The three stocks highlighted by TheStreet, including BFSMX, CS, and DB, have a total market cap of over $97 billion and are part of the banking industry.
  • Shares of Grupo Financiero Santander Mexico SAB de CV are down 11.2% year-to-date as of the close of trading on Wednesday, while Credit Suisse Group has gained 11.0% year-to-date and Deutsche Bank has gained 3.8% year-to-date.
  • TheStreet Ratings rates BFSMX, CS, and DB as a sell (http://www.thestreet.com/r/ratings/reports/ir-screener.html?action=sell?cm_ven_int=tstwire), citing weaknesses including generally disappointing historical performance in the stock itself and deteriorating net income.
  • Investors interested in the financial sector could consider the Financial Select Sector SPDR (XLF) while those bearish on the sector could consider the Proshares Short Financials (SEF).

Statistics:

  • Dow Jones Industrial Average is trading down 54 points (-0.3%) at 17,704 as of Thursday, July 2, 2015, 12:55 PM ET.
  • NYSE advances/declines ratio is 1,396 issues advancing vs. 1,580 declining with 168 unchanged.
  • Financial sector is down 0.3% versus the S&P 500, which is also down 0.3%.
  • Grupo Financiero Santander Mexico SAB de CV (BSMX) up 1.3% to $9.32 on light volume, with 405,676 shares exchanged hands as compared to its average daily volume of 1.7 million shares.
  • Credit Suisse Group (CS) up 2.1% to $28.43 on average volume, with 913,566 shares exchanged hands as compared to its average daily volume of 1.2 million shares.
  • Deutsche Bank (DB) up 0.6% to $31.35 on light volume, with 707,709 shares exchanged hands as compared to its average daily volume of 1.9 million shares.
  • Market cap of BFSMX, CS, and DB is over $97 billion.
  • Shares of BFSMX, CS, and DB have a range of performances, with BFSMX down 11.2%, CS up 11.0%, and DB up 3.8% year-to-date as of the close of trading on Wednesday.

Sources:

  • http://www.thestreet.com/quote/%5eDJI.html
  • http://www.thestreet.com/quote/xoom.html
  • http://www.thestreet.com/quote/ace.html
  • http://www.thestreet.com/quote/mkl.html
  • http://www.thestreet.com/quote/cb.html
  • http://www.thestreet.com/quote/bsbr.html
  • http://www.thestreet.com/quote/wu.html
  • http://www.thestreet.com/quote/shg.html
  • http://www.thestreet.com/quote/nmr.html
  • http://www.thestreet.com/quote/ing.html
  • http://www.thestreet.com/quote/rf.html