Financials Overview: Week of July 17–21, 2017
Weakness in banking stocks continued last week with more banks posting mixed results. The S&P Financial Sector Index fell 0.3%.
Although banks’ earnings were better than expected, banking stocks fell due to weak trading revenue and disappointing forecasts.
Last week, financials got a boost after major banks cleared the latest round of the Fed’s stress tests. Financial stocks rose 1.5% last week.
On July 5, 2017, the Utilities Select Sector SPDR ETF was offering a dividend yield of 4.1%, while the SPDR S&P 500 (SPX-INDEX) (SPY) was yielding ~1.9%.
Schneider National (SNDR) topped the list with a stock price gain of 6.5%. It was the top gainer in the logistics and air travel sector.
For the week of June 26–30, 2017, General Motors (GM) was the top performer among automobile manufacturers. Its stock rose 2.1% during the past week.
Major banking stocks rose after the Fed approved huge payout plans. Wells Fargo (WFC) rose 2.7% and Citigroup (C) rose 2.8%.
During the week ending June 23, 2017, logistics provider C.H. Robinson Worldwide (CHRW) saw the biggest loss in the logistics and air travel sector.
US stocks ended the week with a marginal gain. Weak financials and consumer staples shares eclipsed a rally in the healthcare and biotechnology sectors.
On June 12, 2017, the White House issued recommendations to relax banking regulations due to a significant improvement in the financial system and renewed economic growth.
Of the 24 analysts following Panera, none are recommending a “sell,” while 12.5% are recommending a “buy,” and 87.5% are recommending a “hold.”
As of June 14, 2017, Shake Shack was trading at a PE multiple of 69.1x compared to 60.7x before the announcement of its 1Q17 earnings.
The financial sector boosted US stocks last week even as the market continued to trade sideways in the absence of major new economic data.
Financials took a hit in the week of May 29–June 2, 2017, with the S&P 500 Financials Index falling 0.80% compared to a rise of 1.0% in the S&P 500.
During his campaign, President Trump expressed that he would abolish the EPA. He thinks that the EPA hampers business by regularly issuing new laws.
President Trump’s economic stimulus policy and an increase in infrastructure investment are expected to have a positive impact on US GDP growth.
The US pharmaceutical sector is made up of different areas geared toward the development, production, and marketing of drugs. Let’s take a look at some of the sector’s 1Q17 mergers and acquisitions.
Global recovery and resilient domestic demand are expected to support Eurozone (EZU) (FEZ) recovery in 2017.
According to a TransOil report for week 13, bunker fuel prices will strengthen at the beginning of next week.
The start of week 13 wasn’t impressive for the VLCC market since the supply and demand imbalance was at a multiple week high.