The Nasdaq has slipped 0.7%, the S&P 500 has decreased 0.8% and the Dow is trading down 0.6% on a bad morning for the market. 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 currently lagging behind the overall market, down 1.2%, and its current biggest movers are:
|Company||Market Cap||Percentage Change|
|Apollo Residential Mortgage (NYSE:AMTG)||$529.9 million||-7.5%|
|Corpbanca Sociedad Anonima (NYSE:BCA)||$3.27 billion||+2.4%|
|Signature (Nasdaq:SBNY)||$3.31 billion||-1.6%|
|M&T Bank (NYSE:MTB)||$12.66 billion||-1.4%|
|Goldman Sachs (NYSE:GS)||$59.76 billion||-1.4%|
|Deutsche (NYSE:DB)||$39.87 billion||+1.3%|
|LPL Investment Holdings (Nasdaq:LPLA)||$3.03 billion||+1.2%|
Broker Summary: OptionsXpress Online Trading Platform
Apollo Residential Mortgage (NYSE:AMTG) is trading at $20.27 per share, down 7.5%. This morning, the company is trading a volume of 527,959 shares.
Corpbanca Sociedad Anonima (NYSE:BCA) has moved up 2.4% and is currently trading at $20.07 per share. So far today, the company's volume is 3,411 shares, 0.1 times the average daily volume.
Falling 1.6%, Signature (Nasdaq:SBNY) is currently at a share price of $70.22. The company is trading at a volume of 25,920 shares. This is on pace to fall short of yesterday's volume of 129,158 shares.
At $97.48, M&T Bank (NYSE:MTB) has slipped 1.4%. With 130,841 shares changing hands so far today, the company's volume is 0.1 times its current three-month average.
Goldman Sachs (NYSE:GS) is currently trading at a share price of $125.39, a 1.4% decline. So far today, the company's volume is 1.2 million shares.
After an increase of 1.3%, Deutsche (NYSE:DB) has reached a current price of $44.02. The company's volume is currently 576,019 shares for the day, in line with the current daily average.
Rising 1.2%, LPL Investment Holdings (Nasdaq:LPLA) is currently trading at $28.27 per share. The company's volume for the day so far is 60,381 shares. This is on pace to reach yesterday's trading volume of 104,743 shares.
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. Daily stock performance should be weighed against historical performance and put in context of the market overall. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.