Financials Lead Rally; Here are Some of the Big Winners
The financial sector is leading a big rally on Wall Street on Friday as traders and investors speculate that more monetary support is forthcoming from the European Central Bank and Federal Reserve. The Financial Select Sector SPDR ETF (NYSE: XLF) has jumped nearly 2% on the session and was trading near its highs of the day heading into the last hour. Here are some the day's big winners and what is driving financial share prices.
Barclays (NYSE: BCS) - This stock has been hit hard in recent months as a result of the LIBOR-rigging scandal, which ultimately led to the ouster of the bank's CEO, and the debt crisis in Europe. Over the last 3 months, shares have lost around 27%. On Friday, however, BCS was trading up nearly 10%. The near-term trend is now pointing higher in the stock and the RSI is above 53. Shares have also retaken their 20-day moving average and were sitting better than 5% above that level, but below both the 50-day and 200-day moving averages.
Credit Suisse (NYSE: CS) - This foreign money center bank has also found itself in the crosshairs of the market. Shares have plummeted better than 24% in 2012 and the stock has been unable to recover from a persistent sell-off. CS shares, however, are rallying on Friday and were last trading up around 6% to $17.70. From a technical perspective, CS still looks weak. The stock, has retaken its 20-day moving average on Friday and with a little more strength, its RSI will break above 50.
Deutsche Bank (NYSE: DB) - This German bank has been plagued by the same issues as Barclays and Credit Suisse. The stock has lost more than 19% in 2012. On Friday, DB has staged a strong rally and was trading up around 6% heading into the final hour of trade. Despite today's rally, the shares still look weak from a technical standpoint, with DB still trading well below its 20-day moving average. The stock is also 10.40% below the 50-day and almost 22% below the 200-day moving average.
Genworth Financial (NYSE: GNW) - This life insurance company has seen its share price hit hard in 2012, falling more than 22%. The stock has jumped on Friday, along with the entire sector. Heading into the final hour of trade, GNW was up around 6.50%. From a technical perspective, GNW still looks weak as it remains below all of its moving averages and has an RSI under 50.
Invesco (NYSE: IVZ) - This asset manager has seen a strong pop in its share price on Friday. Heading into the final hour, IVZ shares had risen better than 6% on heavy volume. In 2012, the stock has added almost 11%, but remains well off of its year-to-date highs. Interestingly, after today's move, IVZ has broken above all of its moving averages and could be set for a further rally next week. This is a stock to keep an eye on.
Raymond James (NYSE:RFJ) - This boutique broker is up almost 10% in 2012 despite volatility in the financial sector. On Friday, the stock was trading around 7% higher during the final hour of trade. The stock is coming up on a trendline resistance area, but momentum may be shifting to the bullish side in RJF. The shares are trading above the 20, 50, and 200-day moving averages and its RSI has broken out above 50.
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