After falling sharply from the peak in mid-July through late last week, the S&P 500 index has staged a notable recovery. During the past five days (through approximately 11:30 this morning), the benchmark has gained 1.28%.
Yet despite the recent turnaround, financials continue to lag. The group (which has an equivalent exchange-traded fund, or ETF (NYSE: XLF) ) is down 0.55%, and of the 20 worst-performing index members over the five-day span, 11 are linked to banking or other financial services (see below).
Given the way problems stemming from the subprime meltdown have continued to spread, the fact that financial shares have not even held their own at a time when investors are reportedly "snapping up bargains" is a troubling sign.
| Stock |
5-day % return (through 11:30 am) |
|
| XTO Energy Inc | -3.53 | |
| Analog Devices | -3.73 | |
| Bank NY Mellon | -3.82 | * |
| Broadcom Corp-A | -3.98 | |
| Jabil Circuit | -4.37 | |
| Capital One | -4.47 | * |
| M&T Bank Corp | -4.50 | * |
| Janus Capital | -4.72 | * |
| Ambac Finl Group | -4.74 | * |
| J.C. Penney Co | -4.97 | |
| First Horizon | -5.24 | * |
| Wash Mutual Inc | -5.29 | * |
| Natl City Corp | -5.63 | * |
| Eog Resources | -5.83 | |
| Northern Trust | -5.92 | * |
| Moody's Corp | -7.04 | * |
| MBIA Inc | -7.97 | * |
| Kohl's Corp | -8.14 | |
| Monster Worldwide | -8.19 |
(* = banking or financial services-related)
Michael Panzner is a 25-year veteran of the global stock, bond, and currency markets and the author of Financial Armageddon: Protecting Your Future from Four Impending Catastrophes and The New Laws of the Stock Market Jungle.
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