A nice bounce rally turned red due to the lingering doom and gloom recovery story, as central bankers from around the world converge to Jackson Hole to assess the darkening economic outlook. Only off (0.67%) financials, namely regional banks, didn’t take the brunt of the selloff as the group underperformed Wednesday and their recovery is based on housing and unemployment. Goldman led the financial downtick after ongoing concerns about the downside risk to consensus estimates on the back of another sluggish quarter in capital markets activity. Insurers finished down (0.73%) due to the continuing depressed interest rate environment and accompanying portfolio concerns. Service names led the sector, up 0.03%, COF upgrade the best story there. Asset managers also hung in there after Legg Mason’s takeover speculation made its rounds again.
Leaders:
FBP+12.85%,DRL+12.50%,FMD+6.70%,OZM+5.71%,DLLR+3.72%,CBZ+3.62%,NFP+3.15%,OB+3.12%
Laggards:
HMPR+11.8%,ABK-8.52%,CVBF-5.29%,CCRT-4.91%,SBCF-4.27%,PNFP-4.07%,FAF-3.90%,LAZ-3.74%,GLAD-3.58%
Big Banks
-
BAC, C, WFC, JPM, GS, MS, FITB,HBAN, HCBK, PBCT, FHN, RF,
Mid/SmallcapBanks/S&L
-
FBP, WAL, EWBC
,
RBPAA, ,NYB,DCOM,SBIB,CVBF ,TFSL,IBCP,BRKL
,
CFFN,PCBC,CARE,OZRK,RNST,SNV
Brokers
KCG, SCHW, AMTD, ETFC
Asset Managers/Inv co’s
- BX, FIG, GLG JNS, LAZ, MF, LM,KFN
,
AMP
Insurance
- GNW, HIG, MET, ALL, TRV
CreditCards
- AXP, COF, MA, V, DFS
Specialty Finance/Mort Insurers
- ABK, MBI, MTG, RDN
DLLR
reports Q4 EPS $0.42 vs Reuters $0.38
- Company reports revenues of $159.0M vs Reuters $160.3M - Guides f11 EPS to $2.05-$2.30 vs Reuters $2.01
UEPS
reports Q4 EPS $0.45, ex items vs Reuters $0.50
o
Card Firms Scramble for Profits – WSJ link
o Executives at the nation's biggest issuers of plastic are trying to figure out how to make money in a business that is shrinking while getting more costly to operate.
o
Surprise slowdown in US credit card losses
from FT.com
§
US credit-card losses are falling faster than expected, with the six largest card issuers expected to earn nearly $10bn more in the coming 12 months than predicted, says a study by Moody’s
o
TD Ameritrade Gets Lift from Buyback Deal
from TheStreet.com
§
Shares of TD Ameritrade rose in after-hours action after the online broker disclosed a deal to repurchase up to 12 million of its common shares from Barclays.
o
I.R.S. to Drop Suit Against UBS Over Tax Havens
from
DealBook
§
The Internal Revenue Service said Thursday that it would drop a closely watched civil lawsuit against the Swiss bank giant UBS after the Swiss government said it was on course to hand over details on thousands of American clients suspected of using their accounts to evade taxes.
o
I.C.B.C. and BOC Set for Slower Growth
from DealBook
§
Industrial and Commercial Bank of China and Bank of China, two of the top Chinese lenders, signaled a peaking of earnings growth after strong second-quarter profits, as they slow their lending and focus on asset quality.
o
COMMERZBANK
says no concrete plan for capital hike – S&P
o
WSJ
discusses headwinds for credit card industry
o
Six largest credit card issuers expected to earn nearly $10B more this year than predicted - FT
o
ABK
Ambac Financial files to withdraw $1B mixed shelf originally filed 1-Apr-09
o
STSA
Sterling Financial/WA completes 20-Aug announced $730M recapitalization effort
o
TICC
TICC Capital files $50M mixed shelf
o
AMTD
TD Ameritrade enters into agreement with Barclays for structured repurchase of up to 12M shares
o
AXS
Axis Capital Holdings CFO David Greenfield will resign effective 30-Nov
o
AIG
American International Group decides not to sell strategic stake in AIA before IPO – Reuters
COLB, HFWA
– Wunderlich initiates with a buy
PNC – Jany lowers price tgt to $70
NYB -
Citigroup positive - poised to outperform – After meeting with New York Community's management, Citigroup is more confident that the bank will generate above-industry growth and market share gains. The firm maintains a Buy rating on the stock.
