- Fianncial Select Sector SPDR ETF (NYSEARCA:XLF) gains 2.1% and SPDR S&P Regional Banking ETF (NYSEARCA:KRE) rises 2.0%, outpacing the S&P 500's 1.7% rise, and helped by the Fed proposing to ease regulations for all but the largest banks and the overall expectation that even if the Democrats gain control of the House of Representatives, the outlook isn't all that bleak.
- Earlier this year financials had lost some ground, but may be on firmer footing now that expectations have reset, according to Raymond James analyst David Long, Bloomberg First Word reports. YTD, XLF is down 6% while the S&P is up 1.9%
- In action today, Goldman Sachs (GS +4.2%), Bank of America (BAC +3.5%), and Morgan Stanley (NYSE:MS) lead gains among big banks.
- Among regionals, Regions Financial (RF +4%), PNC Financial (PNC +3.6%), Bank OZK (OZK +3.5%), KeyCorp (KEY +3.5%), and Huntington Bancshares (HBAN +3.2%) are all up strongly.
- Custodial banks Bank of New York Mellon (BK +1.4%), State Street (STT +2.7%), and Northern Trust (NTRS +2.3%) are also doing well.
- Santander (MC:SAN) Consumer USA (SC +5.9%) rises on strong Q3 results.
- Previously: Fed unveils proposal to ease regulations for some large banks (Oct. 31)
- Previously: Five banks get upgrades by Raymond James as backdrop `ain't so bad' (Oct. 31)
- Previously: Democrat gains in midterms may not be bad news for banks (Oct. 30)
- ETFs: XLF, FAS, FAZ, VFH, UYG, FNCL, IYF, BTO, IYG, RYF, FXO, SEF-OLD, FINU, RWW, FINZ, JHMF, FAZZ
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