Lindblom, Ledwith, Mayerhofer (212) 829-5482
Great start to the month as the market rallied more than 2% yesterday as Chinese manufacturing soothed worries about a global economic slowdown. Despite a pre-open sector downgrade by Bank of America, financials were especially strong, stretching as far as 3.3% as they closed on the highs. XLF reaching for its 50 day of $14.26. Banks made the biggest move in the sector up 4%, as recently depressed regional banks such as SNV, RF, ZION, FITB, gapped higher behind vanilla add-ons fueling sloppy short covering. Service names, 3.96%, were led by online brokers, which we bought all day, as the street (hopes) predicts for better trading metrics in September. Insurance names finished up 2.5% as M&A chatter circulates around the space, namely HIG, LNC, XL, CNO.
Leaders:
MTG+9.83%,PVTB+9.76%,RDN+8.37%,SNV+7.77%,CNO+7.61%,OB+7.9%,pRSP+7.51%,COWN+7.04%,PL+7.01%
Laggards:
CPF-1.91%,SBCF-1.65%,DEAR-1.55%,
MCO
Moody's initiated market perform at Keefe, Bruyette & Woods
Big Banks - BAC, C, WFC, JPM, GS, FITB, HCBK, PBCT
Mid/SmallcapBanks/S&L- FBP, RBPAA, CVBF, PCBC, CARE, OZRK,
Brokers AMTD, ETFC,SWS
Asset Managers/Inv co’s- FIG, AMP, FNGN, PZN
Insurance- GNW, HIG, ALL, LNC, CB, SBX
CreditCards- AXP, COF, MA, V, DFS
Specialty Finance/Mort Insurers- ABK, MBI, AGO, OCN
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