XLF Has Big Downside Risk
I rate XLF a Sell due to concerns about valuation, sector risks, and recent outperformance versus the broader market. Financials face significant risks from inflation, higher interest rates, and potential recession, despite some positive catalysts like possible deregulation. XLF's performance has been driven by a handful of large holdings, while the rest of the ETF is similar to the overall market return.
Call of the Day: Bank stocks
Oppenheimer is downgrading the banks. It's our Call of the Day.
Upbeat April Jobs Data Put Focus on 3 Sector ETFs & Stocks
The U.S. economy added 177,000 jobs in April 2025, a slowdown from the downwardly revised 185,000 in March, but significantly surpassing market expectations of 130,000.
Should You Invest in the Financial Select Sector SPDR ETF (XLF)?
Looking for broad exposure to the Financials - Broad segment of the equity market? You should consider the Financial Select Sector SPDR ETF (XLF), a passively managed exchange traded fund launched on 12/16/1998.
Final Trade: XLF, ORLY, PFE, UBER
The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.
XLF ETF Is Not Out Of The Woods Yet
I consider XLF a HOLD due to mixed impacts from the current aggressive interest rate cut outlook. Lower interest rates could benefit some of XLF's holdings through increased lending and increased economic transactions. Negative impacts include pressure on insurance companies' investment income and banks' Net Interest Margin.
Financial Sector: Pullback Opportunity or Warning Sign?
With several major banks kicking off earnings season last Friday, the financial sector is back in focus. After a double-digit correction from 52-week highs, investors are likely wondering whether now is the time to consider buying or if more downside lies ahead.
ETFs Surge on US Stocks' Best Week Since 2023: What's Next?
U.S. stocks record best week since 2023. Let's see what lies in store for stocks and ETFs.
BKCL:CA: Leveraging Canada's Big 6 In A Possibly Imminent Recession
BKCL:CA is a levered ETF offering a 17.7% yield, enhanced by covered call strategies on Canadian banks, making it a compelling buy for yield-focused investors. Covered call strategies work best in sideways to slightly bullish markets, but can still provide a buffer in falling markets by offsetting some losses. Canadian banks, particularly the Big Six, are resilient with strong capital bases and diversified funding, but face elevated credit risk due to tariffs and potential recession.
Trade Tracker: Malcom Ethridge sells his XLF Position
Malcolm Ethridge, managing partner at Capital Area Planning Group, joins CNBC's 'Halftime Report' to explain why he's getting out of financials.
XLF: A Sector To Buy On The Dip
XLF is showing relative strength, outperforming broader indices and topping in early March. XLF's strong 2024 performance and attractive valuations suggest a buying opportunity around $46.6-$47, with potential profit-taking at $51-$52. Despite risks, XLF's positive backdrop and relative strength indicate it could continue to perform well if the economy avoids recession.
XLF: Financials Should Be Avoided During Recession, Like Today
The U.S. banking and financial sector is at risk of a significant downturn if a recession unfolds in early 2025, shocking overconfident investor sentiment. Historical recessions show that bank/insurance equities, particularly those in the Financial Select Sector SPDR® Fund ETF, suffer substantial declines during contractions in GDP, on loan/bond write-down fears. Recent economic indicators, including a sudden decline in consumer spending and GDPNow forecasts, suggest a recession is imminent, exacerbated by President Trump policies.
