Tag Archives for " JPM "

financial

Financial Sector | Where There’s Smoke…

You know the old saying, where there’s smoke there’s fire.  The Financial ETF (XLF) just lost 9.7% in the last 10 trading days. So when it comes to the financial sector of the stock market what is the smoke?

The smoke for financials is a higher than normal rise in certain interest rates that might signal financial distress. Recently the spread between the London Interbank Offered Rate (LIBOR) and Overnight Indexed Swap Rate (OIS) has been rising rapidly and now stands at the highest level since the Financial Crisis. Continue reading

Will This Change Help the Financials?

Today the focus is on State Street Global Advisors (SSGA)’ Financial Select Sector SPDR Fund (XLF). This ETF is usually either the number 2 or number 3 most actively traded non-index ETF.  3 month average daily volume of a little over 40 million shares.

Sector Changes

In June S&P Dow Jones Indices and MSCI, Inc. announced they were modifying the S&P sectors to remove real estate from the financials (except mortgage REITS) and create a new S&P real estate sector.

So in order to continue accurately tracking the sectors, SSGA announced they were removing real estate holdings from the XLF and creating a new ETF called the The Real Estate Select Sector SPDR Fund (XLRE).

Special Dividend

Removing real estate from the Financials will take place after the close on September 16.  XLF will issue a special dividend to its shareholders as part of this adjustment. Ex-dividend date is September 19.  The dividend will be in the form of shares of the new XLRE fund.

So going forward starting September 17, XLF will include securities of diversified financial services, insurance, banks, capital markets, consumer finance, thrifts and mortgage finance, and mortgage real estate investment trusts (REITs).

The chart of XLF is discussed in the brief market wrap video shown below. The three largest holdings in XLF are Berkshire Hathaway Inc. Class B, at 9.18%, JP Morgan Chase & Co. at 8.01% and Wells Fargo & Company at 7.59%.   Continue reading

How Could We Be This Wrong?

uncertaintyThe jobs report came out Friday morning and all the analysts on CNBC and elsewhere were stunned. Most were expecting jobs growth of 160,000 for May. Instead we got 38,000!!!

And March and April were revised down also. As Jim Cramer said on CNBC, ‘we track all this data, how could we be this wrong?’  I think that pretty much sums it up.

Then all the financial stocks got whacked. The dollar dropped. Gold, Yen and long-term bonds popped to the upside. The stock market really took a hit the first hour but clawed its way back, still down on the day.

The video below is an abbreviated version of what I provide my Insider Members. In today’s video, in addition to the market I look at 3 financial stocks…Bank of America (BAC), Citigroup (C) and JPMorgan Chase (JPM).

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