Large-cap stocks above $10 billion make up 87.3% of the Financial Select Sector SPDR Fund (XLF). These stocks lost 4.4% in the past year and 1% last week.
US stock markets closed last week in red. The Fed kept rates unchanged and concerns regarding a potential “Brexit” weighed in on global markets.
This week, investors in banking stocks are watching for the results of the Fed’s 2016 stress test. Favorable results might bring some optimism to the sector.
Generally, banking stocks (XLF) trade between 1x and 2x their book values. Stocks trading lower than their book values attract investor attention.
Oppenheimer and Barclays (BCS) gave one-year price targets of $243 and $210. They’re the most bullish on Goldman Sachs.
J.P. Morgan’s 1Q16 earnings beat investor’s expectations. Loan growth and credit quality improved despite weakness from the investment banking business.
Wells Fargo has a consensus target price of $54.81 for the next 12-month period. This implies a return potential of 17%.
In a Bloomberg survey of 32 analysts, 26 analysts assigned a “buy” rating to Citigroup. Six analysts rated it as a “hold.” It didn’t receive any “sell” ratings.
Wall Street analysts have been bullish on Bank of America shares due to prospects of an interest rate hike, improving profitability, and cheap valuations.
The EIA stated that the US crude oil refinery demand rose by 211,000 bpd to 16.4 MMbpd for the week ending June 3, 2016—compared to the previous week.
The ESA stated that the video game industry in the US is one of the country’s fastest-growing sectors. In 2012, the video game industry added $6.2 billion to the US economy.
Starting with a modest computer game developed in the 1940s, the video gaming industry has exploded as graphics and technology continue to advance. This series will look at the various trends and highlights that impact the gaming sector.
Shares of Bank of America (BAC) have nearly doubled since 2009. So far in 2016, the stock underperformed the banking sector.
US banks (XLF) (KBE) demonstrated strong balance sheet metrics during the fourth quarter. This is visible in the loan and deposit growth.
Loans and leases grew by 1.1% YoY in 1Q16—led by a 3.9% increase in commercial and industrial loans and 1.6% growth in non-farm non-residential real estate loans.
During the first quarter, the average net interest margin of FDIC-insured institutions was 3.10%—slightly higher than 3.0% in 1Q15.
During 1Q16, banks created loan loss provisions of $12.5 billion. This was ~50% higher YoY. US banks had a rough start to the year as oil prices fell sharply.
The FDIC released its quarterly report on the health of the US banking industry on June 1. It suggested that 1Q16 bank earnings fell 2% year-over-year.
AT&T started selling iPhones in 2007 under subsidy plans. Now installment plans have become beneficial to users and telecom companies alike.
Google’s (GOOG) Android currently dominates the smartphone operating system market, with a worldwide share of more than 80%.