tl;dr
Insurers were the main players among the top declining financial stocks in thepast week, while a lending platform used by banks, an insurer, and twocrypto-related companies, along with a West Coast regional bank, were among thegainers. The biggest news in the financial space was the Federal Reserve'...
Insurers were the main players among the top declining financial stocks in the
past week, while a lending platform used by banks, an insurer, and two
crypto-related companies, along with a West Coast regional bank, were among the
gainers. The biggest news in the financial space was the Federal Reserve's
decision to keep rates unchanged, although it left the door open for further
hikes if necessary. However, the odds of another hike decreased after the
October jobs report indicated a cooling economy. FinTech companies performed
well, with the Financial Select Sector SPDR ETF jumping 7.5% for the week. Some
insurers didn't fare as well, with Unum Group experiencing the biggest decline
of financial stocks with a market cap of over $2 billion. While its Q3 earnings
beat expectations, its Closed Block business was the only one to post a decline
in adjusted operating income due to higher long-term care benefits and a lower
LTC earnings trajectory. Markel Group fell 6.7% during the week, with its
combined ratio increasing to 99% from 93% in the year-ago quarter. Peruvian bank
Credicorp slid 2.8% as its Q3 net income declined 6% and its return on equity
dropped to 16.2% from 19.8% in the previous year. On the positive side, Upstart
Holdings, an AI-driven lending platform, surged 32% on the expectation that the
Federal Reserve would no longer raise rates. Mercury General climbed 23% after
its Q3 earnings handily beat Wall Street estimates. Coinbase Global saw a 21%
increase as the company expects "meaningful positive" adjusted EBITDA for 2023.
Western Alliance Bancorporation, which struggled during the spring's banking
turmoil, jumped 20%. Lastly, Riot Platforms gained 19% after Bernstein gave the
bitcoin-mining company an Outperform rating in new coverage.