Sector Update: Financial Stocks Edge Down
Financial stocks saw slight declines by late Monday afternoon. The NYSE Financial Index dipped 0.1%, while the Financial Select Sector SPDR Fund (XLF) dropped 0.3%. Similarly, the Philadelphia Housing Index and the Real Estate Select Sector SPDR Fund (XLRE) fell by 0.3% and 1.1%, respectively.
Financial stocks saw slight declines by late Monday afternoon. The NYSE Financial Index dipped 0.1%, while the Financial Select Sector SPDR Fund (XLF) dropped 0.3%. Similarly, the Philadelphia Housing Index and the Real Estate Select Sector SPDR Fund (XLRE) fell by 0.3% and 1.1%, respectively.
Key Market Updates:
- Bitcoin (BTC/USD): Rose 3.7%, reaching $102,030.
- 10-Year US Treasury Yield: Increased by 2.9 basis points to 4.62%.
Economic Highlights:
- US Factory Orders: Fell 0.4% in November, aligning with expectations from a Bloomberg survey, following a revised 0.5% increase in October.
- S&P Global US Services Index: Revised down to 56.8 for December, compared to the preliminary reading of 58.5. Analysts had anticipated no changes.
Regulatory News:
- Federal Reserve Announcement: Michael Barr, Vice Chair for Supervision, will step down on February 28, while continuing as a governor on the Federal Reserve Board.
Corporate News:
- HSBC: Appointed Lisa McGeough as the new president and CEO of its US operations. HSBC shares increased by 0.4%.
- Goldman Sachs: UBS downgraded Goldman Sachs' rating from “buy” to “neutral,” citing its reliance on global banking and markets. However, UBS raised its price target to $610 from $600. Goldman Sachs shares rose by 0.8%.
- Navient: Shares climbed 2.5% following the company’s agreement to sell its government services division to Gallant Capital Partners.
- Berkshire Hathaway: Vanderbilt Mortgage & Finance, a Berkshire subsidiary, faces a lawsuit from the US Consumer Financial Protection Bureau over allegedly risky home loans. Berkshire Hathaway shares eased by 0.8%.