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Financial sector exchange-traded funds were higher on Thursday as the corporate earnings season helped push bank stocks up.
Thursday the Invesco KBW Regional Bank Portfolio (NYSEArca: KBWR) increased by 0.2% while the ETF SPDR S&P Bank (NYSEArca: KBE) increased by 0.4%. Meanwhile, the wider SPDR Financial Sector (NYSEArca: XLF) was flat.
“The markets were priced perfectly, and now that we have the uncertainty that the Fed will withdraw from politics, it is causing this pause,” said Derek Halpenny, research manager for global markets in the European region. at MUFG Bank, Wall Street Journal. . “The feeling of positive risk has definitely faded.”
Among the leaders, US Bancorp (USB) shares rose 2.8% after the company reported second-quarter earnings per share of $ 1.28, 14 cents above estimates, with revenue exceeding also expectations. The regional bank benefited from the improving economy, which helped bolster credit and debit card revenues and allowed it to reduce its allowance for credit losses, reports CNBC.
Shares of American International Group (AIG) rose 2.8% after announcing a deal to sell a 9.9% stake in its life insurance and retirement services unit to Blackstone (BX) for $ 2.2 billion. Blackstone also agreed to a long-term contract to manage initial assets of $ 50 billion, with the amount rising to nearly $ 100 billion over the next six years, the Wall Street Journal reports. The AIG unit has around $ 200 billion in assets.
Shares of Truist Financial (TFC) rose 2.0% after reporting adjusted quarterly earnings of $ 1.55 per share, compared to the consensus estimate of $ 1.19. Revenues exceeded Wall Street forecasts. The bank recorded strong commission and wealth management income, among other factors, in the second quarter.
Meanwhile, shares of Morgan Stanley (MS) were down after announcing that they exceeded estimates by 20 cents with second quarter earnings of $ 1.85 per share. Turnover also exceeded forecasts, thanks to an acceleration in investment banking activity.
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