Last Friday, several large banks launched the income season, the financial sector is again in the spotlight. After two-digit correction from 52-week maximums, investors are likely to wonder if the time has come for purchase or even more disadvantages.
Recent Sales in global promotionsTo a large extent caused by wide new tariffs of the administration, they pulled out markets in all directions. And although several sectors were removed, financial indicators were able to withstand relatively well compared to a wider market.
So, let’s carefully consider how the main names of the sector last week expressed that their earnings say about a broader picture, and whether this rollback can be possible.
Finances are correct, but demonstrate relative power
Financial Select Sector SPDR Fund Today
SPDR FINANCIAL SECTOR SECT Foundation
As of 04/15/2025 21:10
- 52-week range
- $ 39.53
▼
$ 52.64
- Dividend yield
- 1.50%
- Assets under the control
- 48.54 billion dollars
SPDR Financial SecTOR Foundation NYSEARCH: XLFThe popular ETF, the tracking sector, decreased by 3.4% from the beginning to 11.3% of its 52-week maximum. For comparison, S&P 500 fell by almost 9% YTD and about 13% from maximums. This makes financial indicators one of the stronger areas in the market, where fear and volatility dominate.
After arrived on Friday from several sector giants, including Wells Fargo and JP Morgan, XLF rallied 1.6%, ending just below the 200-day simple sliding average. The end of this level could Offer buyers to retreat B and that a higher level is formed, a potential sign of updated force.
Nevertheless, some analysts recently noted that although tariffs may not affect financial institutions, a secondary influence on consumer behavior and corporate expenses can lead to future growth and credit activities.
Big banks start the revenue season
Several key shares in the XLF ETF made a profit on Friday, offering an idea of the sustainability and perspective of the sector:
JPMorgan Chase NYSE: JPM It is reported that the EP of the 1st quarter is $ 5.07 compared to estimates of $ 4.64 with revenue in the amount of $ 45.31 billion. Director General Jamie Diamond warned of “significant turbulence” ahead, referring to tariffs and inflation, deficiency and geopolitical uncertainty. While the rhythm was strong, his words and tone were offered The bank remains careful About the nearest risks.
Black NYSE: BLK I placed a profit per share in the amount of 11.30 US dollars, surpassing expectations by 0.46 US dollars, although revenue is $ 5.28 billion. USA. Aum rose to 11.58 trillion dollars. General Director Larry Finn said that the tariff announcements “went beyond everything that I could imagine”, warning about short -term volatility that caused the damage to the board when customers recede.
Wells Fargo NYSE: WFC They reached a profit of $ 1.39, surpassing forecasts, although revenue decreased by 3.4% compared to the same period last year. CEO Charlie Sharf confirmed caution, expecting “continuing the volatility and uncertainty”, but confirmed the bank’s readiness for the slowest economic background of 2025.
Morgan Stanley NYSE: MS Increased estimates from the EP 1 quarter in the amount of $ 2.60 and income of $ 17.74 billion. USA. The revenue from shares increased by 45% in annual calculus to a record 4.13 billion dollars. USA, due to force in primary brokers and derivatives. The bank emphasized the strong activity of customers, especially in Asia, despite volatility.
Opportunity with a cautious lens
Despite the correction of the sector, financial indicators are still superior to a wider market and demonstrate signs of stability. Thanks to solid income and strong activity in trading tables, recent weakness can provide the possibility of a long -term investor, especially if the XLF restores key technical levels.
Current estimates of the sector, including P/E JPM 11.5, 12.6 MS and 11.2 WFC, can be attractive to the investor of the long -term cost and additionally the sector appeal regarding its current positioning.
Nevertheless, caution remains justified in the short term, as many of the above -mentioned general directors of the company measured. The influence of tariffs, the growth of volatility and a slowdown in global growth can lead to the next quarters to lead to the banking foundations. For investors, this may be a moment to carefully monitor, it is not necessary to rush, but in order to think about potential influence gradually, if the relative force is preserved.
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