Wednesday, May 5, 2010

Financials; Brokers; Asset managers News Overview


· Brokers – the group comes for sale across the board (most big names down 1-2%).  GS was acting well for most of the day this morning but gave up those gains into the bell (GS’s Wealth Mgmt group held a call w/Blankfein and clients – it doesn’t seem like anything too incremental was revealed on this call though).  Fitch today lowered its outlook on Goldman. 

· Asset managers – the group sells off today; AMG, AB, JNS, IVZ among the weakest names.  CLMS is up ~8% after earnings. 

· Exchanges – ICE rallies >4% after earnings this morning; CME shares inch higher in sympathy. 

· Life insurance – the group trades mostly lower across the board; PNX sinks 13% and gives back its bounce from Tues (which was all short covering).  Other major names are all in the red. 

· MIs/guarantors – all in the red; RDN drops another 12% (adding to its Tues losses, which came after earnings + the cap raise).  MBI is one of the few stocks that is eking out small gains. 

· Credit cards – selling in MA and V today (worries about new interchange amendments being added to the Dodd bill along w/concerns about European exposure weighing). 

· Banks – the regional banks hang in OK – they are viewed as having some of the smallest exposure to the situation in Europe.  CMA, CYN, PNC, MI, RF all hang onto gains heading into the close.  Trust banks acts OK – STT’s analyst meeting giving a boost to the group (also viewed as being a safer haven destination although the worse Europe becomes, the lower rates will prob. stay….the trusts are plays on higher rates).

· Non-life insurance – the space is seeing buy demand today (viewed as a safer haven destination within financials).  XL climbs 4% after earnings. 

· Best Performing sp500 financials: ICE, XL, MI, AIZ, NDAQ, ALL, BK, STT, PNC, TRV


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