Lindblom, Ledwith, Mayerhofer (212) 829-5482
Financials got beat up again after the jobs report and Philly-manufacturing numbers indicated the economy may be slowing faster than forecast. XLF retreated back below $14 as the market rolled over mid-morning. Banks (2.19%) lagged the sector, followed by financial services (1.75%) and insurers (0.48%). The life insurers’ black eye continues to grow as Cuomo adds AIG to its fraud investigation regarding death benefits. Regional banks and mortgage insurers were the top laggards, as we’ve seen aggressive shorting in both groups since earnings last week. A late day bullish call on JPM couldn’t stop the bleeding as it went on to finish off 2.16%. It’s a matter of time till the M&A buzz moves to financial land
Leaders:
NAL 12.5%, FCFC 5.26%, FBP 2.34%, AF 1.71%, SBCF 1.59%, FFCH 1.44%, WBS 1.19%, PNNT 0.9%, HAFC 0.78%
Laggards:
SWS (14.6%), PCBC (11%), FBC (9.25%), NEWS (8.59%), GRNB (8.13%), UBSH (7.99%), UCBI (7%), FNFG (6.4%)
Big Banks
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BAC, C, WFC, JPM, GS, MS, FITB, STT, USB, HBAN, HCBK, PBCT, FHN, RF, BBT
Mid/SmallcapBanks/S&L
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FBP, WAL, EWBC, GSBC, HMPR, IBKC, PRWT, RBPAA, WBCO,NYB,DCOM,SBIB,CVBF,GAIN,LKFN,TFSL,IBCP,BRKL
Brokers
KCG, SCHW, AMTD, ETFCD
Asset Managers/Inv co’s
- BX, FIG, GLG, GROW, JNS, LAZ, MF, LM,KFN
Insurance
- GNW, HIG, MET, ALL, TRV
CreditCards
- AXP, COF, MA, V, DFS
Specialty Finance/Mort Insurers
- ACAS, ABK, MBI, MTG, RDN
USB
US Bancorp to acquire F.N.B Corporation's corporate trust administration business ($21.89 -$0.51)
AIZ
Assurant Health announces reductions in workforce at various locations; sees after tax charges of $5.5M in Q3 ($36.72)
BAC
Bank of America plans to test retail payments with cell phones; Visa (V) confirms it is working with BofA on tests-- Reuters ($13.02)-
NARA
Nara Bancorp announces closing of bulk loan sale ($6.27)
WDI.GR
Rumour mill: Wirecard AG trading higher on speculation of Visa (V) takeover interest at €10 per share
Credit Suisse initiates MTG, PMI, RDN
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PMI Group (PMI) initiated outperform with $5.50 target
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Radian Group (RDN) initiated outperform with $12 target
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MGIC Investment (MTG) initiated neutral with $9 target
KKR
Kohlberg Kravis Roberts initiated outperform at Oppenheimer ($10.42)- Target is $14.
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