Financials Update after the Close $BBT $JPM

Financials

·         Banks – the banks were for sale today as the neg. UBS call; BBT, KEY, PNC, RF, TCB, STI all fell a few %, although selling wasn’t all that aggressive in the space (def. some profit taking but shorts staying away for the most part, esp. ahead of earnings).  BAC perked up into the close ahead of its earnings on Fri. 

·         MIs/financial guarantors – the group sold off today.  ABK in particular had a huge intra-day swing…..ending off more than 24% (JPMorgan’s A Wessel published a neg. call on ABK intra-day today –  Others in the space also came for sale – MTG, PMI, GNW, MBI, etc.  this has been prob. the best performing group in the whole market and was ripe for profit taking.  A lot of the big short squeeze is starting to abate in this group. 

·         Cards – AXP outperforms following pos. comments from Citi this morning (AXP up ~1% on the day while DFS finishes flattish and COF ends off ~0.5%). 

·         BPOP ends up 15% after its capital raise yesterday; DJ article talks about the co using the money to do accretive deals. 

·         Asset managers – the space had a big rally today; AB up 4% and BEN up 3% after strong AUM #s. 

·         Brokers – MS falls ~1.4% on the day after the WSJ talked about the co lagging GS this earnings season again; GS ticks up small. 

·         Best performing sp500 stocks: VNO, PLD, SPG, AIV, BEN, BXP, XL, HST, AVB

·         Weakest performing: HBAN, RF, AIG, PNC, SLM, KEY, ETFC, BBT, MS, ST