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Last week’s declining financial stocks reflected an acquisition by a large stock exchange operator and softer outlooks at two large regional banks. Meanwhile, the climbers were led by a fintech that received some favorable attention from a sell-side analyst and included three Argentine banks.
Overall, financial stocks ended the week in the green, but underperformed the broader market. The Financial Select Sector SPDR ETF (NYSEARCA:XLF) rose 1.2% during the week, lagging the 2.6% gain for the S&P 500.
Nasdaq (NASDAQ:NDAQ) dropped the most of financial stocks with market cap over $2B during the week ended June 16, falling 11% after agreeing to acquire financial software firm Adenza for $10.5B in cash and stock.
Genworth (NYSE:GNW), the insurance company, fell 11%;
F&G Annuities & Life (NYSE:FG), slid 7.7%;
Salt Lake City, Utah-based Zions Bancorporation (NASDAQ:ZION) dipped 7.3% afer Janney downgraded the regional bank to Neutral on reduced net interest margin guidance.
KeyCorp (NYSE:KEY) stock dropped 7.0% after its CFO warned of softer than anticipated net interest income in Q2.
The strongest gain came from Upstart Holdings (NASDAQ:UPST), which provides a lending platform to banks, surging 16% during the week that BTIG rated Upstart (UPST) a Buy in new coverage; in addition, UPST signed on Texas Bay Credit Union to its platform.
Argentine banks made a strong showing this week even as the Argentine peso (ARS:USD) weakened 3.4% against the U.S. dollar. Grupo Financiero Galicia (NASDAQ:GGAL) stock rose 14%, followed by Banco Macro SA (NYSE:BMA), which increased 12%.
U.S.-based financial data and analytics firm Dun & Bradstreet Holdings (NYSE:DNB) rose 11%, and
Banco BBVA Argentina (NYSE:BBAR) jumped 9.5% during the week.
In Friday’s ratings changes, two analysts moved to the sidelines on SoFi Technologies (SOFI), Truist (TFC) was downgraded to Hold, and LendingClub (LC) gained a Buy rating.
