With the start of many major banks in the profit season last Friday, the financial sector returned to focus. After correction of two number of its highest levels for 52 weeks, investors are likely to wonder if the time has come now to consider the purchase or if there is more negative aspects.
Latter Selling in global stocksWhich caused a large way to a new tariff in management, shook the markets in all fields. Although a few sectors have succeeded, the financial statements were able to withstand relatively well compared to the wider market.
Therefore, let’s closely study how the upper sector names were performed last week, and what their profits say about the broader image, and whether this decline can be the opportunity to buy.
The financial statements are correct, but it shows the relative strength
Financial Select Sector SPDR FUND today
Financial Select Sector SPDR FUND
As of 04/14/2025 04:10 pm
- 52 weeks
- $ 39.53
▼
$ 52.64
- Profit
- 1.51 %
- Assets under management
- 47.27 billion dollars
SPDR Fund for Sector Financial Sector Nysearca: xlfThe famous ETF, which follows the sector, decreased by 3.4 % on an annual basis and 11.3 % of 52 weeks. In comparison, the S&P 500 decreased by approximately 9 % YTD and about 13 % of its highest levels. This makes financial statements one of the strongest areas in the market dominated by fear and volatility.
After Friday’s profits from many sector giants, including Wells Fargo and JP Morgan, XLF gathered by 1.6 %, and ended slightly less than the simple moving average for 200 days. Restoring this level can It indicates that buyers are retreating In this higher decrease is formation, a possible mark on renewable strength.
However, some analysts recently noted that although customs tariffs may not directly affect financial institutions, secondary effects on consumer behavior and spending on companies can affect future growth and loan activity.
Big banks start the profit season
XLF ETF has provided on Friday profits on Friday, providing an insight into the sector’s flexibility and expectations:
Jpmorgan Chase Nyse: jpm The profitability of the quarter (Q1) arrow was reported from $ 5.07 for $ 4.64, on revenues of $ 45.31 billion. CEO Jimmy Damon warned of the “great turmoil” in the future, citing definitions, inflation, impotence, and geopolitical uncertainty. While the rhythm was strong, his words and tone suggested The bank is still cautious About risks in the short term.
Blackrock NYSE: BLK The share profitability was published $ 11.30, overcoming expectations of $ 0.46, despite revenue of $ 5.28 billion. AUM rose to $ 11.58 trillion. CEO Larry Fink said that the tariff ads “have passed anything that I could imagine”, a warning of the short -term harm revenues with the retreat of customers.
Wales Vargo New York: WFC The share profitability achieved $ 1.39, overcoming expectations, although revenue decreased by 3.4 % on an annual basis. CEO Charlie Sherfin chanted caution, expecting “continuous fluctuations and uncertainty”, but he reaffirmed the bank’s willingness to a slower economic background 2025.
Morgan Stanley Nyse: ms Its estimates with the profitability of the first quarter of $ 2.60 and revenues of $ 17.74 billion. The stock revenue increased by 45 % year on an annual basis to $ 4.13 billion, driven by the main mediation and derivatives. The bank highlighted the activity of the strong customer, especially in Asia, despite the volatility.
An opportunity with a cautious lens
Although the sector is corrected, financial statements are still outperforming the broader market and signs of flexibility appear. With strong profit rhythms and strong activity through trading offices, the last weakness can represent an opportunity for a long -term investor, especially if XLF regains the main technical levels.
The current evaluation of the sector, including JPM’s P/E of 11.5, MS 12.6, and 11.2 of WFC, may be attractive to the investor value in the long term and enhance the sector’s appeal for his current situation.
However, caution remains justified in the short term, as many CEOs of the aforementioned company have been identified. The effect of definitions, increased volatility, and the slow global growth can affect the basics of banks during the coming quarters. For investors, this may be a moment to watch closely, not necessarily rush, but to consider that a possible construction is gradually if the relative force continues.
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