The market is on the rise this morning. The Nasdaq is trading up 0.9%; the S&P 500 is up 0.5%; and the Dow has increased 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.
Underperforming the market overall, the Financial sector (XLF) is up 0.7%, and these are its current biggest movers:
|Company||Market Cap||Percentage Change|
|Acacia (Nasdaq:ACTG)||$1.14 billion||-3.5%|
|Main Street (NYSE:MAIN)||$961.9 million||-3.1%|
|Enstar (Nasdaq:ESGR)||$1.64 billion||+2.8%|
|Texas Pacific (NYSE:TPL)||$513.9 million||-2.6%|
|FleetCor Technologies (NYSE:FLT)||$3.86 billion||+2.5%|
|Altisource Portfolio Solutions (Nasdaq:ASPS)||$2.62 billion||-2.2%|
|Sabine (NYSE:SBR)||$698.6 million||-1.9%|
Beginner's Guide To Thinkorswim Trading Platform
Falling 3.5%, Acacia (Nasdaq:ACTG) is currently at a share price of $22.06. So far today, the company's volume is 341,027 shares. This is 0.7 times its current daily average.
Main Street (NYSE:MAIN) is down 3.1% to reach $29.55 per share. The company's volume for the day so far is 178,953 shares, 0.8 times the current three-month average.
Enstar (Nasdaq:ESGR) has risen 2.8% and is currently trading at $101.63 per share. So far today, the company's volume is 3,730 shares.
Texas Pacific (NYSE:TPL) has fallen 2.6% and is currently trading at $55.78 per share. So far today, the company's volume is 4,727 shares,.
FleetCor Technologies (NYSE:FLT) is up 2.5% to reach a current price of $47.28 per share. The company's volume for the day so far is 771,702 shares. This is 2.2 times the current daily average.
At $109.51, Altisource Portfolio Solutions (Nasdaq:ASPS) has slipped 2.2%. The company's volume is currently 40,741 shares for the day, 0.1 times the average volume over the last three months.
Sabine (NYSE:SBR) is currently trading at a share price of $47, a 1.9% decline. So far today, 22,911 shares have 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.