SPDR S&P 500 and Other Big Movers In Financial on November 7, 2012

The market has been slipping so far today. The Nasdaq is down 2.7%; the S&P 500 has fallen 2.6%; and the Dow has decreased 2.5%. 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 3.4%, and its current biggest movers are:

Company	Market Cap	Percentage Change
Humana (NYSE:HUM)	$12.32 billion	-10.3%
Goldman Sachs (NYSE:GS)	$60.53 billion	-5.9%
M&T Bank (NYSE:MTB)	$13.26 billion	-4.1%
Affiliated Managers Group (NYSE:AMG)	$6.6 billion	-3.2%
Alleghany (NYSE:Y)	$5.89 billion	-3%
SPDR S&P 500 (NYSE:SPY)	$109.26 billion	-2.6%
SPDR S&P MidCap 400 (NYSE:MDY)	$9.42 billion	-2.5%

Broker Summary: OptionsXpress Online Trading Platform

After a precipitous drop of 10.3%, Humana (NYSE:HUM) is now trading at a share price of $68.34. This morning, the company is trading a volume of 4.6 million shares.

Currently trading at $118.86 per share, Goldman Sachs (NYSE:GS) has fallen 5.9%. At 3.3 million shares, the company's volume so far today is.

M&T Bank (NYSE:MTB) has decreased to $100.44 per share, a 4.1% fall. So far today, the company's volume is 361,688 shares. This is 0.4 times the average volume over the last three months.

At $124.41, Affiliated Managers Group (NYSE:AMG) has slipped 3.2%. The company's volume is currently 101,194 shares for the day, 0.2 times the current daily average.

Falling 3%, Alleghany (NYSE:Y) is currently at a share price of $337.77. The company is currently trading a volume of 7,322 shares.

SPDR S&P 500 (NYSE:SPY) is down 2.6% to reach $139.24 per share. This morning, 95.3 million shares have been traded,.

Slipping 2.5%, SPDR S&P MidCap 400 (NYSE:MDY) is currently trading at $178.09 per share. This morning, the company is trading a volume of 1.6 million shares. This is 0.8 times the current three-month average.

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. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.