On a bad day for the market, the Nasdaq has decreased 0.4%, the S&P 500 is down 0.2% and the Dow has fallen 0.2%. The financial sector is the category of stocks containing firms that provide financial services to commercial and retail customers. This sector includes banks, investment funds, insurance companies and real estate. Financial services perform best in low interest rate environments. A large portion of this sector generates revenue from mortgages and loans, which gain value as interest rates drop. Furthermore, when the business cycle is in an upswing, the financial sector benefits from additional investments. Improved economic conditions usually lead to more capital projects and increased personal investing. New projects require financing, which usually leads to a larger number of loans.

The Financial sector (XLF) is down 0.3%, outperforming the market overall. Currently, the biggest movers in the sector are:

Company Market Cap Percentage Change
American National Insurance (Nasdaq:ANAT) $1.76 billion +3.5%
Erie Indemnity (Nasdaq:ERIE) $3.64 billion +2.9%
iShares Silver Trust (NYSE:SLV) $10.76 billion -2.1%
ICICI Bank Limited (NYSE:IBN) $21.98 billion -2%
First Cash Financial Services (Nasdaq:FCFS) $1.37 billion -2%
Nationstar Mortgage Holdings (NYSE:NSM) $2.45 billion +1.9%
Woori Finance Holdings Co., Ltd (NYSE:WF) $7.27 billion +1.9%

Software Summary: Finviz.com Stock Screener

American National Insurance (Nasdaq:ANAT) has increased to a share price of $67.76, a 3.5% rise. So far today, the company's volume is 20,895 shares.

Erie Indemnity (Nasdaq:ERIE) is currently trading at $70.71 per share, a 2.9% increase. At 13,380 shares, the company's volume so far today is 0.6 times its average over the past three months.

iShares Silver Trust (NYSE:SLV) is currently trading at a share price of $32.43, a 2.1% decline. The company is trading at a volume of 5.8 million shares. This is about the same trading activity as there was yesterday.

Slipping 2%, ICICI Bank Limited (NYSE:IBN) is currently trading at $40.69 per share. The company's volume is currently one million shares for the day, 0.9 times the average daily volume.

Currently trading at $48.01 per share, First Cash Financial Services (Nasdaq:FCFS) has fallen 2%. So far today, 51,989 shares have changed hands.

After an increase of 1.9%, Nationstar Mortgage Holdings (NYSE:NSM) has reached a current price of $29.94. The company's volume is currently 547,544 shares for the day, 0.4 times its current three-month average.

Rising 1.9%, Woori Finance Holdings Co., Ltd (NYSE:WF) is currently trading at $28.17 per share. The company's volume for the day so far is 3,253 shares. At this rate, trading activity will likely be down from yesterday when 9,263 shares changed hands.

The Bottom Line The nature of the market is such that stocks will have good days and bad days. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. Tools like valuation ratios and profit margins, however, are only as useful as the context you put them in; remember to take historical data and competitor performance into account.

Related Articles
  1. Mutual Funds & ETFs

    Top Three Transportation ETFs

    These three transportation funds attract the majority of sector volume.
  2. Stock Analysis

    5 Cheap Dividend Stocks for a Bear Market

    Here are five stocks that pay safe dividends and should be at least somewhat resilient to a bear market.
  3. Investing Basics

    Tops Tips for Trading ETFs

    A look at two different trading strategies for ETFs - one for investors and the other for active traders.
  4. Investing

    How to Win More by Losing Less in Today’s Markets

    The further you fall, the harder it is to climb back up. It’s a universal truth that is painfully apparent in the investing world.
  5. Fundamental Analysis

    Use Options Data To Predict Stock Market Direction

    Options market trading data can provide important insights about the direction of stocks and the overall market. Here’s how to track it.
  6. Stock Analysis

    2 Oil Stocks to Buy Right Now (PSX,TSO)

    Can these two oil stocks buck the trend?
  7. Investing News

    What Alcoa’s (AA) Breakup Means for Investors

    Alcoa plans to split into two companies. Is this a bullish catalyst for investors?
  8. Mutual Funds & ETFs

    Top 4 Investment Grade Corporate Bonds ETFs

    Discover detailed analysis and information about some of the top exchange-traded funds (ETFs) that offer exposure to the investment-grade corporate bond market.
  9. Insurance

    The 5 Biggest Russian Insurance Companies

    Discover the five companies that dominate the Russian insurance market, and learn a little more about their business operations and ownership.
  10. Stock Analysis

    Top 3 Stocks for the Coming Holiday Season

    If you want to buck the bear market trend by going long on consumer stocks, these three might be your best bets.
  1. Can mutual funds invest in IPOs?

    Mutual funds can invest in initial public offerings (IPOS). However, most mutual funds have bylaws that prevent them from ... Read Full Answer >>
  2. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  3. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  4. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  5. Does index trading increase market vulnerability?

    The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
  6. What does a high turnover ratio signify for an investment fund?

    If an investment fund has a high turnover ratio, it indicates it replaces most or all of its holdings over a one-year period. ... Read Full Answer >>

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!