Ultime notizie per SPDR S&P Insurance ETF (ARCA:KIE)

SPDR S&P Insurance ETF

Financial Services

Healthcare

Technology

Consumer Cyclical

Energy

Consumer Defensive

Communication Services

Industrials

Real Estate

Other

Utilities

Basic Materials

In seeking to track the performance of the S&P Insurance Select Industry Index (the index), the fund employs a sampling strategy. It generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. The index represents the insurance segment of the S&P Total Market Index (S&P TMI).

Cno Financial Group Inc

Erie Indemnity Co

Brighthouse Financial Inc

Kinsale Capital Group Inc

Unum Group

Globe Life Inc.

Ryan Specialty Group Holdings Inc

Old Republic International Corp

Cincinnati Financial Corp.

Fidelity National Financial Inc.

Kier Group PLC

Insured losses are way higher than originally anticipated due to the havoc from <a href="https://www.benzinga.com/markets/equities/24/10/41240852/back-to-back-hurricanes-batter-floridas-insurance-market-stocks-to-watch">back-to-back hurricanes</a>.
What Happened: Moody&#8217;s Risk Management Solutions, or RMS, <a href="https://www.rms.com/newsroom/announcement/2024-10-14/moodys-rms-event-response-us-private-market-insured-loss-estimate-for-hurricanes-helene-and-milton">crunched</a> the data to determine the financial impact of Hurricanes Milton and Helene. 
The firm expects total insured losses to range between $35 billion and $55 billion. 
That&#8217;s nearly quadruple what Moody's originally estimated, with losses falling between $8 billion and $14 billion. 
Hurricane Milton, the 13th named storm of the season, closely followed Hurricane Helene, which made landfall just two weeks earlier in Florida&#8217;s Big Bend region along the Gulf of Mexico.
Both storms hit many of the same areas, bringing widespread wind damage, storm surges, and inland flooding.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41317881/hurricane-milton-to-deliver-2-5b-blow-to-floridas-homebuilding-sector-goldman-sachs">Hurricane Milton To Deliver $2.5B Blow To Florida&#8217;s Homebuilding Sector, Goldman Sachs Says</a>
Why It Matters: Moody&#8217;s estimates help insurance companies, policymakers and other stakeholders assess the financial risks and prepare for the economic consequences of such events in the future.
And that&#8217;s important considering hurricane season typically runs until Nov. 30. 
But here&#8217;s the thing: Floridians already pay exorbitant homeowners&#8217; insurance premiums, <a href="https://www.orlandoweekly.com/news/experts-worry-floridas-2024-hurricane-season-could-wipeout-recent-homeowners-insurance-fixes-38005875">per</a> Orlando Weekly. With the immense damage caused by these storms, they&#8217;re going to be paying even more.
According to Moody&#8217;s Chief Risk Modeling Officer Mohsen Rahnama, several factors add uncertainty to the final loss estimates. These include the complexity of hazard patterns, such as the damaging tornadoes spawned by Milton's rainbands in southern Florida, and the storm's interaction with a mid-latitude jet, which created two swaths of the strongest winds. 
In some cases, structures already damaged by Helene may have sustained further damage from Milton. This complicates efforts to determine the primary cause of loss and leads to potential coverage issues.
It&#8217;s not just Helene and Milton. Overlapping insurance claims and Florida's annual deductibles may increase losses for properties previously damaged by past hurricanes, such as Ian in 2022.
Altogether, the Moody&#8217;s ground teams conducted &#8220;field reconnaissance&#8221; for more than 2,000 miles of damage.
&#8220;Our teams are still in Florida surveying the impacted areas,&#8221; Rahnama said.
Florida&#8217;s Insurance Problem: Several major insurance companies had already retreated from Florida due to the high risks associated with the state&#8217;s frequent hurricanes and rising litigation costs. The ones that remained include:
<ul>
<li>Allstate Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALL#NYSE">ALL</a>) </li>
<li>Travelers Companies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>) </li>
<li>Progressive Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PGR#NYSE">PGR</a>) </li>
<li>State Farm</li>
</ul>
Florida-only carriers will take the hardest hit, per a Moody&#8217;s report from Oct. 10. These insurance companies have at least 75% of their homeowners and commercial property premiums written in the state, the firm noted. 
&#8220;The top 10 Florida-only insurers write about 50% of the state&#8217;s homeowners business and are more vulnerable than others given their geographic concentration,&#8221; the company <a href="https://floridaphoenix.com/wp-content/uploads/2024/10/Moodys-Ratings_Hurricane-Milton_Reinsurers-10Oct2024-PBC_1425591-1.pdf">stated</a>. They include:
<ul>
<li>Citizens Property Insurance Corp.</li>
<li>Universal P&amp;C</li>
<li>Tower Hill</li>
<li>First Protective</li>
<li>Slide Insurance</li>
<li>Edison Insurance</li>
<li>Amer Integrity</li>
<li>Florida Peninsula</li>
<li>Homeowners Choice P&amp;C</li>
<li>Security First </li>
</ul>
ETFs To Watch: Three exchange-traded funds tracking public companies in the insurance space were all in the green at last check Monday:
<ul>
<li>SPDR S&amp;P Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KIE#NYSE">KIE</a>), up 0.78%</li>
<li>iShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>), up 0.37%</li>
<li>Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>), up 0.58%</li>
</ul>
What&#8217;s Next: Moody's will provide a final industry loss estimate for Milton by the end of this week.
The National Hurricane Center is tracking a tropical depression in the Atlantic Ocean. 
Though it can bring heavy rain and cause flooding, a tropical depression is generally weak; if wind speeds increase beyond 39 miles per hour, it can develop into a tropical storm or hurricane if conditions allow.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Mon 10/14 8am EDT: <a href="https://twitter.com/hashtag/AL94?src=hash&amp;ref_src=twsrc%5Etfw">#AL94</a> has a chance of developing into a tropical depression as it approaches, or moves near the northern <a href="https://twitter.com/hashtag/LeewardIslands?src=hash&amp;ref_src=twsrc%5Etfw">#LeewardIslands</a> late this week. <a href="https://t.co/1aFZ3ykENk">pic.twitter.com/1aFZ3ykENk</a>
&mdash; National Hurricane Center (@NHC_Atlantic) <a href="https://twitter.com/NHC_Atlantic/status/1845796399990129124?ref_src=twsrc%5Etfw">October 14, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Now Read:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41319060/s-p-500-extends-record-highs-dow-breaks-43-000-ahead-of-pivotal-earnings-week-bitco">S&amp;P 500 Extends Record Highs, Dow Breaks 43K, Bitcoin Rallies: What&#8217;s Driving Markets Monday?</a></li>
</ul>
Photo: Shutterstock

News

Insurance

ETFs

iShares Dow Jones US Insurance Index Fund

KBWP

Hurricanes Helene, Milton Insurance Losses Spike To $55B: Moody's

Morningstar DBRS Sees Initial Insured Losses Between $60B To $100B If Hurricane Milton Makes Direct Landfall In Tampa

Making its debut on 11/08/2005, smart beta exchange traded fund SPDR S&amp;P Insurance ETF (ARCA:KIE) provides investors broad exposure to the Financials ETFs category of the market.
<h2>What Are Smart Beta ETFs?</h2>
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
<h2>Fund Sponsor &amp; Index</h2>
KIE is managed by State Street Global Advisors, and this fund has amassed over $890.09 million, which makes it one of the average sized ETFs in the Financials ETFs. This particular fund, before fees and expenses, seeks to match the performance of the S&amp;P Insurance Select Industry Index.
The S&amp;P Insurance Select Industry Index represents the insurance segment of the S&amp;P Total Market Index.
<h2>Cost &amp; Other Expenses</h2>
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.35% for this ETF, which makes it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.34%.
<h2>Sector Exposure and Top Holdings</h2>
It is important to delve into an ETF&#39;s holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
KIE&#39;s heaviest allocation is in the Financials sector, which is about 100% of the portfolio.
When you look at individual holdings, Erie Indemnity Company Cl A (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/erie#NASDAQ">ERIE</a>) accounts for about 2.46% of the fund&#39;s total assets, followed by Ryan Specialty Holdings Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ryan#NYSE">RYAN</a>) and Kinsale Capital Group Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/knsl#NYSE">KNSL</a>).
Its top 10 holdings account for approximately 22.7% of KIE&#39;s total assets under management.
<h2>Performance and Risk</h2>
So far this year, KIE has added roughly 24.48%, and was up about 31.63% in the last one year (as of 09/16/2024). During this past 52-week period, the fund has traded between $41.63 and $56.48.
The ETF has a beta of 0.84 and standard deviation of 18.17% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
SPDR S&amp;P Insurance ETF is an excellent option for investors seeking to outperform the Financials ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/kbwp#NASDAQ">KBWP</a>) tracks KBW Nasdaq Property &amp; Casualty Index and the iShares U.S. Insurance ETF (ARCA:IAK) tracks Dow Jones U.S. Select Insurance Index. Invesco KBW Property &amp; Casualty Insurance ETF has $333.52 million in assets, iShares U.S. Insurance ETF has $709.73 million. KBWP has an expense ratio of 0.35% and IAK charges 0.39%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Financials ETFs.
<a href="https://www.zacks.com/stock/news/2336243/is-spdr-s-p-insurance-etf-kie-a-strong-etf-right-now?cid=CS-BENZ-FT-smart_beta_etf-2336243">To read this article on Zacks.com click here.</a>

Large Cap

Mid Cap

Sector ETFs

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Markets

Trading Ideas

ERIE

KNSL

RYAN

Is SPDR S&P Insurance ETF a Strong ETF Right Now?

The insurance sector is among the prime beneficiaries of higher rates for a longer period. This is because the sector players are able to earn higher returns on their investment portfolio of longer-duration bonds. However, these firms incur losses as the value of longer-duration bonds goes down with a rise in interest rates. Nevertheless, since insurance companies have long-term investment horizons, they can hold investments until maturity, and hence, no actual losses are realized. 
Additionally, decent earnings reports have helped the sector to survive the market rout seen last month. SPDR S&amp;P Insurance ETF (ARCA:KIE) and iShares U.S. Insurance ETF (ARCA:IAK) are down about just 0.6% each over the past month, while Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/kbwp#NASDAQ">KBWP</a>) is relatively flat.
<h3>Insurance Earnings in Focus</h3>
The U.S. life insurance behemoth MetLife (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/met#NYSE">MET</a>) matched earnings estimates but missed revenue estimates. MetLife reported earnings of $1.83 per share, which were on par with the Zacks Consensus Estimate and improved 20.4% from the year-ago quarter. Revenues climbed 5.5% year over year to $17 billion and were below the consensus estimate of $17.69 billion. The second-largest U.S. life insurer Prudential Financial (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pru#NYSE">PRU</a>) missed on earnings but beat estimates on revenues. Earnings per share of $3.12 lagged the Zacks Consensus Estimate of $3.16 but increased 15.5% from the year-ago earnings. Revenues grew 44.8% year over year to $21.70 billion and edged past the consensus mark of $14.78 billion. 
Chubb Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cb#NYSE">CB</a>), one of the leading property and casualty insurers, surpassed the Zacks Consensus Estimate for earnings per share by 12 cents and topped the revenue estimate by $433 million. Earnings per share improved 22.7% year over year. Another property and casualty insurer, Allstate (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/all#NYSE">ALL</a>) posted an earnings per share of $5.13, surpassing the Zacks Consensus Estimate of $4.11. The company had reported a loss of $1.30 per share in the year-ago quarter. Revenues grew 12% year over year to $15.40 billion, well above the consensus mark of $15.29 billion. 
Earnings per share of $1.66 reported by Aflac (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/afl#NYSE">AFL</a>), a seller of supplemental health insurance, trumped the Zacks Consensus Estimate by 8 cents and improved from the year-ago earnings of $1.55. Revenues grew 13.3% year over year to $5.4 billion and beat the consensus mark of $5.3 billion. 
Personal property and casualty insurer Travelers (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/trv#NYSE">TRV</a>) posted earnings per share of $4.69, missing the Zacks Consensus Estimate by 6 cents but improving 14.1% from the year-ago earnings. Revenues grew 15.3% year over year to $11.2 billion and edged past the consensus mark of $11.9 billion.
<h3>ETFs in Focus</h3>
SPDR S&amp;P Insurance ETF 
SPDR S&amp;P Insurance ETF follows the S&amp;P Insurance Select Industry Index, holding well-diversified 48 stocks in its basket. About 50% of the portfolio is allocated to property and casualty insurance, while life &amp; health insurance and insurance brokers round off the next two spots with double-digit exposure. SPDR S&amp;P Insurance ETF has managed $715.6 million in its asset base and charges 35 bps in annual fees. It has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. 
iShares U.S. Insurance ETF 
With AUM of $638.7 million, iShares U.S. Insurance ETF offers exposure to U.S. companies that provide life, property and casualty, and full-line insurance. It tracks the Dow Jones U.S. Select Insurance Index and holds 54 securities in its basket with a double-digit concentration on the top two firms. Property &amp; casualty insurance accounts for the largest share at 69.6%, while life &amp; health insurance rounds off the next spot with double-digit exposure. iShares U.S. Insurance ETF charges 40 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook. 
Invesco KBW Property &amp; Casualty Insurance ETF 
Invesco KBW Property &amp; Casualty Insurance ETF provides exposure to 25 companies primarily engaged in U.S. property and casualty insurance activities. It follows the KBW Nasdaq Property &amp; Casualty Index and is concentrated on the top five firms that make up about 8% share each. Invesco KBW Property &amp; Casualty Insurance ETF has managed $317.9 million in its asset base and has an expense ratio of 0.35%. KBWP has a Zacks ETF Rank #3 with a Medium risk outlook.
<a href="https://www.zacks.com/stock/news/2271639/here-s-how-insurance-etfs-are-placed-post-q1-earnings?cid=CS-BENZ-FT-etf_news_and_commentary-2271639">To read this article on Zacks.com click here.</a>

Earnings

Here's How Insurance ETFs Are Placed Post Q1 Earnings

At least three people are reported to have died on Tuesday, Feb. 6 as a result of the floods and mudslides that <a href="https://www.benzinga.com/topic/california">swept across Southern California</a>.
Unprecedented levels of rainfall caused low-elevation sections of the Los Angeles area to flood, leaving destruction along its path of water and mud.
The region is becoming increasingly problematic for residents, as insurers flee the state — which is also highly prone to wildfires — causing the price of home and auto insurance to shoot up.
38 million people have been placed under flood alert, as heavy rains are expected to continue through Tuesday and the soil is oversaturated from the storm that began Sunday.
By Monday afternoon nearly 440,000 homes were left without electricity with some areas around LA reaching up to 11 inches of water.
The fire department responded to at least 130 flood incidents between Sunday and Monday, <a href="https://www.latimes.com/california/story/2024-02-05/stunning-rain-mudslides-flooding-thrash-southern-california-dangerous-storm-isnt-done">according</a> to the LA Times, with Governor Gavin Newsom declaring a state of emergency.
Daniel Swain, a climate scientist with UCLA, called the storm "remarkable and in some ways historic," as unseen levels of rainfall hit specific areas consistently.
With homes and vehicles around the area sustaining damage to diverse degrees, insurers covering the area will likely be hit with massive bills to cover.
The weather event, however, didn't cause a major disturbance to insurance stock prices as of Tuesday. Progressive Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PGR#NYSE">PGR</a>) was down 0.7% on Tuesday. Erie Indemnity Co (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ERIE#NASDAQ">ERIE</a>) was up 0.8%. Fidelity National Financial Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FNF#NYSE">FNF</a>) is up 0.1%.
<h3 class="wp-block-heading">The Causes And Consequences Of The California Insurance Exodus</h3>
The increasingly alarming rate of disastrous events in the Golden State has already become an exit alarm for some players in the California insurance market.
Allstate Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALL#NYSE">ALL</a>), one of the largest insurance companies in the country, decided last June to stop offering new policies in the state, which has also been <a href="https://www.benzinga.com/markets/equities/23/09/34211910/home-insurance-shockwave-climate-risks-trigger-coverage-cuts-as-claims-surge-report">battered by wildfires during recent years</a>.
"The cost to insure new home customers in California is far higher than the price they would pay for policies due to wildfires, higher costs for repairing homes and higher reinsurance premiums," said Allstar in a statement at the time.
The move followed that of competitor State Farm General Insurance Company, which stopped accepting new insurance applications in the Golden State in May.
In August last year Kemper Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMPR#NYSE">KMPR</a>) also decided to swiftly reduce its presence in the California market. The company, owning subsidiaries Merastar Insurance, Unitrin Auto and Home Insurance, Unitrin Direct Property and Casualty, as well as Kemper Independence Insurance decided to not renew existing preferred policies in home and auto insurance across the country.
The decision was expressed by CEO and Chairman Joseph P. Lacher, Jr as "the most effective and efficient way to support our stakeholders" and a way to "release capital and increase the resources available to support our core specialty auto and life businesses," in a move that was allegedly not motivated by climate reasons.
A similar trend has existed in disaster-prone Florida, where the Farmers Insurance Group, a wholly owned subsidiary of Zurich Insurance Group AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ZURVY#OTC">ZURVY</a>), announced its exit from the state in August 2023. Close after, the company also decided to withdraw from all insurance programs offered in California, including home, auto and renters policies.
The rising risk for California real estate is causing the cost of home insurance to rise at higher rates than <a href="https://www.benzinga.com/topic/inflation">inflation</a>. <a href="https://money.com/home-insurance-rates-predictions-2024/">According</a> to Money.com, State Farm was recently approved a 20% increase for renewals, which will be effective in March of this year. Allstate requested a 39.6% rate increase, which is currently under review by the California Department of Insurance.
Some residents of high-risk areas have been forced to last-resort options, including more expensive plans designed for customers who've been rejected by other insurers, <a href="https://www.policygenius.com/homeowners-insurance/news/homeowners-in-california-see-rate-increases-ahead-of-peak-wildfire-months/">reported</a> to PolicyGenius.
Insurance ETFs were generally unaffected by news of the floods.
<ul>
<li>SPDR S&amp;P Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KIE#NYSE">KIE</a>) is up 0.2% on Tuesday at the time of this writing.</li>
<li>iShares US Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>) remained flat on Tuesday.</li>
<li>Invesco KBW Property &amp; Casualty Insurance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBWP#NASDAQ">KBWP</a>) is up 0.1%.</li>
</ul>
 Now Read: <a href="https://www.benzinga.com/news/24/01/36772879/california-developer-aims-to-build-americas-tallest-building-in-this-unusual-location">California Developer Aims To Build America&#8217;s Tallest Building In This Unusual Location</a>
Shutterstock image.

General

KMPR

ZURVY

Deadly Floods In California Put 38 Million Under Emergency Alert While State Faces Massive Insurance Crisis

During midday Thursday trading in New York, U.S. stocks displayed mixed performance, with the technology sector outperforming others as investors maintained a bullish outlook on artificial intelligence, temporarily setting aside <a href="https://www.benzinga.com/topic/interest-rates">concerns about interest rates</a>. 
Additionally, economic data released Thursday morning revealed a robust labor market, with unemployment benefits registering well below expectations <a href="https://www.benzinga.com/economics/macro-economic-events/24/01/36680349/strong-data-dampens-rate-cut-expectations-lifts-dollar-and-spurs-treasury-yields-">for the last week.</a>
Atlanta Fed President Raphael Bostic stated his preference for the start of the rate reduction cycle in the third quarter, emphasizing the importance of avoiding premature cuts that could reignite demand and price pressures, aligning with recent comments made by his colleagues. He mentioned a willingness to initiate rate cuts before July should compelling evidence suggest faster-than-expected inflation deceleration.
The U.S. dollar index (DXY) moved higher, on track to close at its highest level since Dec. 12. Treasury yields also kicked higher, with the 10-year yield rising to 4.14% and the 30-year yield reaching 4.38%. Bonds tumbled, with the iShares 20+ Year Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NYSE">TLT</a>), falling 1%. 
Oil prices, as tracked by the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), experienced a 1.9% upswing after the IEA adjusted its 2024 oil demand growth forecast to 1.24 million bpd, reflecting a 180,000-bpd increase. The revision attributed this boost to improved economic growth and reduced crude prices in the fourth quarter. Furthermore, ongoing geopolitical tensions in the Middle East and between Iran and Pakistan contributed to the continued support for crude prices.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) experienced a sharp 3% decline, dropping below the $42,000 threshold. This cryptocurrency has witnessed a significant 15% decrease since last week&#8217;s surge fueled by speculation about the potential approval of a spot Bitcoin ETF.
<h2 class="wp-block-heading">Thursday&#8217;s Performance In US Major Indices, ETFs</h2>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Index</th>
<th>Price</th>
<th>%</th>
</tr>
</thead>
<tbody>
<tr>
<td>Nasdaq 100</td>
<td>16,848.75</td>
<td>0.7%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>4,746.44</td>
<td>0.2%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>37,210.41</td>
<td>-0.2%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>1,903.12</td>
<td>-0.4%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.2% to $473.23, the SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) inched 0.1% down to $372.38 and the tech-heavy Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) was trading 0.7% higher to $410.20, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>. 
Sector-wise, the Technology Select Sector Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, up 1.2%, followed by the Communication Services Select Sector Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>). 
The Utilities Select Sector Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) was the laggard, down 1.4%, while the Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) witnessed another 1% decline.
On an industry level, the VanEck Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NYSE">SMH</a>) rose the most, up 2.2%. Clean energy stocks underperformed, with the Invesco Wilderhill Clean Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBW#NYSE">PBW</a>) down 2.1%. 
<h2 class="wp-block-heading">Thursday&#8217;s Stock Movers</h2>
<ul>
<li>NovoCure Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVCR#NASDAQ">NVCR</a>) surged 21% as the FDA accepted its application to use Tumor Treating Fields therapy with standard systemic treatments for non-small cell lung cancer.</li>
<li>Hertz Global Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTZ#NASDAQ">HTZ</a>) gained nearly 9% following Morgan Stanley&#8217;s upgrade from Equal-weight to Overweight, prompted by the rental car company&#8217;s reduction of its electric vehicle fleet.</li>
<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) declined by 2.6% as Barclays lowered its price target from $260 to $250 while maintaining an Equal weight rating on the stock.</li>
<li>Medium and smaller-sized chipmakers, in comparison to NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), emerged as top daily performers on the Nasdaq 1000 exchange. Marvell Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>), QUALCOMM Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), Applied Materials, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>), Lam Research Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>) and ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) all recorded gains ranging between 3% and 4% for the day.</li>
<li>Discover Financial Services (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) and KeyCorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KEY#NYSE">KEY</a>) fell by 10% and 5.8%, respectively, after both companies missed last quarter&#8217;s earnings estimates. </li>
<li>Other companies reacting to earnings are Fastenal Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FAST#NASDAQ">FAST</a>) (up 5.9%), Truist Financial Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TFC#NYSE">TFC</a>) (down 1%) and M&amp;T Bank Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTB#NYSE">MTB</a>) (flat).</li>
</ul>
Read now: <a href="https://www.benzinga.com/federal-reserve/24/01/36679977/office-real-estate-market-braces-for-tough-times-as-540-billion-debt-repayment-looms-in-2024">Half A Trillion Dollars: Office Real Estate Owners Are About To Face Huge Debt Payment, New Data Shows 2024 Is A Critical Year</a>
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AI Drives Tech Rebound, Oil Soars, Bitcoin Tumbles: What's Driving Markets Thursday?

Another day of losses shook up Wednesday&#8217;s stock trading session <a href="https://www.benzinga.com/topic/wall-street">on Wall Street</a>.
All major U.S. stock indices in the red, as investors expressed concerns that the Federal Reserve is not in a rush to reduce <a href="https://www.benzinga.com/topic/interest-rates">interest rates early this year.</a>
Market-implied probabilities of a rate cut by the Fed in March have declined to as low as 50%, down from over 70% at the beginning of the week, following recent hawkish statements from the Fed officials and <a href="https://www.benzinga.com/markets/equities/24/01/36659850/annual-retail-sales-surge-by-5-6-in-december-hit-10-month-high-showcase-robust-consumer-demand">stronger-than-expected economic data.</a>
On Thursday, retail sales figures for December exceeded expectations, rising by 0.6% month-over-month, surpassing the predicted 0.4%, and showing a year-over-year surge of 5.6%, marking the highest annual growth since January 2023.
Treasury yields inched higher, with the 10-year benchmark reaching 4.10%, and the dollar reached a monthly high. Virtually every sector recorded losses, with the most significant declines occurring in rate-sensitive sectors, specifically within real estate, consumer discretionary, and technology stocks. 
The Nasdaq 100 declined by 1%, while small-cap stocks, as tracked by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), continued to underperform, falling by 1.6%.
Gold dropped by 1%, silver fell by 1.5%, and Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) was down by 1.9%.
The CBOE Volatility Index, also known as &#8216;VIX&#8217;, rose over 8%, indicating rising investor fear <a href="https://www.benzinga.com/markets/equities/24/01/36660611/vix-at-2-month-high-fears-mount-as-markets-re-assess-rate-cut-premium">in the stock market. </a>
<h2 class="wp-block-heading">Wednesday&#8217;s Performance In US Major Indices, ETFs</h2>
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>US Major Indices</th>
<th>Price</th>
<th>Chg</th>
<th>%</th>
</tr>
</thead>
<tbody>
<tr>
<td>Dow Jones</td>
<td>37,251.06</td>
<td>-110.06</td>
<td>-0.3%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>4,733.64</td>
<td>-32.34</td>
<td>-0.7%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>16,666.90</td>
<td>-163.81</td>
<td>-1.0%</td>
</tr>
<tr>
<td>Russell 2000 ETF</td>
<td>1,905.17</td>
<td>-2.08</td>
<td>-1.1%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) fell 0.7% to $471.65, the SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) inched 0.3% down to $372.65 and the tech-heavy Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) was 1% lower to $405.66, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>. 
Sector-wise, almost all S&amp;P 500 sectors recorded losses, with the Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) sharply underperforming, down 2.3%. 
The Utilities Select Sector Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>), Consumer Discretionary Select Sector Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) and the Technology Select Sector Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) followed suit, down 1.6%, 1.2% and 0.9% respectively. 
The Health Care Select Sector Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) was the only one flat for the day. 
On an industry level, the SPDR S&amp;P Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KIE#NYSE">KIE</a>) rose 0.2%. Solar stocks, as tracked by the Invesco Solar ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAN#NYSE">TAN</a>) and gold miners, as monitored through the VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>) continued to underperformed, down 3.4% and 2.5% respectively. 
<h2 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h2>
Real estate stocks Boston Properties Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BXP#NYSE">BXP</a>) and Healthpeak Properties Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PEAK#NYSE">PEAK</a>) recorded the largest losses within the S&amp;P 500 index, down 4.5% and 4.2% respectively, amid rising risks that the Federal Reserve could postpone the start of its rate-cut cycle. 
Other sector players, such as Vornado Realty Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNO#NYSE">VNO</a>) and Kilroy Realty Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRC#NYSE">KRC</a>), fell 5.6% and 4.7%, respectively. 
Maplebear Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CART#NASDAQ">CART</a>)&#8217;s Instacart spiked over 8% after Wolfe Research upgraded the online grocery shopping company from peer performance to outperform. Wolfe Research analyst Deepak Mathivanan also speculated over a potential takeover bid from Uber Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NASDAQ">UBER</a>).
Shares of low-cost airline Spirit Airlines (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAVE#NYSE">SAVE</a>) tumbled by over 20% Thursday, after falling as much as 47% Wednesday after a U.S. judge blocked the airline&#8217;s $3.8 billion merger with JetBlue Airways Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JBLU#NYSE">JBLU</a>). The latter fell over 8% Thursday.
Meanwhile, EV-related stocks tumbled:
<ul>
<li>Rivian Automotive Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) fell over 8% after Deutsche Bank downgraded the company&#8217;s stock from buy to hold and cut its price target from $29 to $19. </li>
<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) fell 2.8%, after UBS cut its price target from $250 to $229. </li>
<li>Lucid Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCID#NASDAQ">LCID</a>) fell 5%, on track for its 13th negative session out of the last 14. </li>
<li>Plug Power Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLUG#NASDAQ">PLUG</a>) tumbled over 10%.</li>
</ul>
Read Now: <a href="https://www.benzinga.com/markets/latin-america/24/01/36663143/argentinas-milei-condemns-socialism-at-davos-warns-against-left-wing-doctors-attacking-capi">Argentina&#8217;s Milei Condemns Socialism At Davos, Warns Against &#8216;Left-Wing Doctors&#8217; Attacking Capitalism</a>
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US Stocks Sink, Tech And Real Estate Hit Hard Amid Rate Concerns, Dollar Surge: What's Driving Markets Wednesday?

Cities in the Midwest are bracing for a major winter storm that is expected to blast cities, including Chicago and Milwaukee, with strong winds <a href="https://www.benzinga.com/markets/equities/24/01/36612721/winter-storm-adds-fuel-to-us-airlines-troubles-over-1600-flights-reportedly-axed-amid-power-outa">and heavy snow.</a>
The heavy snow forecast along with strong winds will also make for treacherous driving conditions and motorists are being warned not to travel unless absolutely necessary.
Blizzard warnings are in effect across seven states, and forecasters say the storm will be followed by an Arctic air mass that will cover the country over the entire three-day weekend.
It may be too late for many in the region to stock up on winter essentials, but may serve as a reminder to make those purchases ahead of the next winter onslaught.
Sales of hardware items such as snow shovels and flashlights could help boost retailers such as Home Depot (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) and Lowe&#8217;s Companies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LOW#NYSE">LOW</a>) in the coming weeks, while sales of emergency winter car kits and snow tires could provide shares of AutoZone (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AZO#NYSE">AZO</a>) some winter pep.
Douglas Dynamics (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLOW#NYSE">PLOW</a>) could be a stock to watch if the winter does become a particularly harsh. The company manufactures and fits snow plows and salt spreaders, and is based in Milwaukee.
On the downside, it could be a time of heavy claims for insurers. Damage to properties from snow isn&#8217;t that common, but it&#8217;s a time of high claims on motor insurance policies. The SPDR S&amp;P Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KIE#NYSE">KIE</a>) is an exchange traded fund that holds many of the top insurers in the U.S.
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/01/36580671/airline-stocks-clear-for-take-off-in-2024-but-economic-consumer-confidence-clouds-g">Airline Stocks Cleared For Takeoff In 2024, But Economic And Consumer Confidence Clouds Gather</a>
<h2 class="wp-block-heading">Delays At Major Airports</h2>
Winter weather alerts are in place across the Plains and the Midwest, and already many airports in the region are reporting significant delays. These include Chicago O&#8217;Hare International (ORD), Milwaukee General Mitchell International (MKE) and Green Bay Austin Straubel International (GRB).
Airlines have had a bad week following the incident a week ago when a &#8220;plug&#8221; door panel blew out on an Alaska Airlines (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>) jet, forcing an emergency landing. Earlier on Friday, a United Airlines (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>) flight made an emergency landing after a &#8220;door open&#8221; light came on.
Cancellations, weak sentiment and an uninspiring 2024 outlook from Delta Airlines (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAL#NYSE">DAL</a>), saw the entire sector tumble: United shares sank 9.4%, Delta shed 8.2% and American Airlines (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NYSE">AAL</a>) lost 8.3%.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/12143713/newplot-38.jpeg" alt="" class="wp-image-181135" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/12143713/newplot-38.jpeg 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/12143713/newplot-38-300x300.jpeg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/12143713/newplot-38-150x150.jpeg 150w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
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The Snow Shovel Trade: How Midwest Freeze Will Impact Insurers, Retailers

U.S. stocks are poised to close their seventh consecutive week of gains, marking their longest winning <a href="https://www.benzinga.com/markets">streak since October 2017.</a>
In Friday&#8217;s session, the S&amp;P 500 index hovered around the flatline at 1 p.m. in New York, while the Nasdaq 100 rose by 0.4%, getting closer to retesting their all-time highs.
The Dow Jones continues to set new highs, reaching 37,275, but it entered a technically overbought condition not seen since January 2018.
Small-cap stocks declined by 0.9%, but they are in their fifth consecutive winning week, marking their best streak since December 2020.
The dollar, as tracked by Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), is up 0.6% after New York Federal Reserve John Williams said it&#8217;s premature to think about rate cuts. Gold, as tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) slipped 0.6%, while Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) tumbled 2.6%. 
<h2 class="wp-block-heading">Friday Performance In Major US Indices, ETFs</h2>
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>Major Indices &amp; ETFs</th>
<th>Price</th>
<th>% Change</th>
</tr>
</thead>
<tbody>
<tr>
<td>Nasdaq 100</td>
<td>16,614.32</td>
<td>+0.5%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>37,303.26</td>
<td>+0.1%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>4,720.30</td>
<td>0.0%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>1,983.03</td>
<td>-0.9%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was 0.5% lower to&nbsp;$469.71, the SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) was 0.2% lower to $372.63&nbsp;and&nbsp;the Invesco QQQ Trust&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) edged 0.5% higher to $405.28, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a>
Sector-wise, the Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) was the laggard, falling 1.6% after rallying over 3% Thursday. Technology, as tracked by the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>), outperformed, up 0.4%. 
Among industries, solar stocks, as tracked by the Invesco Solar ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAN#NYSE">TAN</a>), rose 1.7%. Regional banks, as tracked by the SPDR Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>), lagged behind, down 1.6%. 
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>S&amp;P Sector ETFs</th>
<th>% Change</th>
</tr>
</thead>
<tbody>
<tr>
<td>Technology</td>
<td>+0.8%</td>
</tr>
<tr>
<td>Consumer Discretionary</td>
<td>+0.2%</td>
</tr>
<tr>
<td>Consumer Staples</td>
<td>0.0%</td>
</tr>
<tr>
<td>Materials</td>
<td>-0.1%</td>
</tr>
<tr>
<td>Industrials</td>
<td>-0.1%</td>
</tr>
<tr>
<td>Communications</td>
<td>-0.4%</td>
</tr>
<tr>
<td>Financials</td>
<td>-0.5%</td>
</tr>
<tr>
<td>Energy</td>
<td>-0.7%</td>
</tr>
<tr>
<td>Health Care</td>
<td>-0.9%</td>
</tr>
<tr>
<td>Utilities</td>
<td>-1.5%</td>
</tr>
<tr>
<td>Real Estate</td>
<td>-1.6%</td>
</tr>
</tbody>
</table>
</figure>
<h2 class="wp-block-heading">Stocks In Focus</h2>
<ul>
<li>First Solar Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FSLR#NASDAQ">FSLR</a>) rose 5.4% as Jefferies initiates the coverage with Buy rating, setting a price target of $211. </li>
<li>Shares of of Steel Dynamics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STLD#NASDAQ">STLD</a>) rose 5.2% as the company released stronger-than-expected fourth-quarter guidance.</li>
<li>Costco Wholesale Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COST#NASDAQ">COST</a>) rose 4.3% after reporting better-than-expected earnings. </li>
<li>Exelon Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EXC#NASDAQ">EXC</a>) tumbled 5.2% after falling 7.6% on Thursday amid a slew of analyst rating downgrades.</li>
<li>Boeing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) rose 3% to the highest since March 2021 after UBS raised the price target from $275 to $315. Shares are up 50% since end October. </li>
</ul>
Read now: <a href="https://www.benzinga.com/top-stories/23/12/36261090/benzingas-stock-whisper-index-5-stocks-investors-secretly-monitor-but-dont-talk-about-yet">Benzinga&#8217;s &#8216;Stock Whisper&#8217; Index: 5 Stocks Investors Secretly Monitor But Don&#8217;t Talk About Yet</a>
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US Stocks Mark 7th Week Of Gains, Nasdaq Moves Closer To All-Time Highs: What's Driving Markets Friday?

It&#8217;s shaping up to be a positive Thursday on Wall Street, with risk sentiment remaining robust after the Federal Reserve effectively opened the door to <a href="https://www.benzinga.com/economics/macro-economic-events/23/12/36225016/powell-signals-peak-interest-rates-foresees-cuts-in-2024-markets-rally-traders-ex">rate cuts in 2024.</a>
The S&amp;P 500 is poised to record its seventh consecutive green session, closing in at just 1.5% away from its all-time highs. The tech-heavy Nasdaq 100 held steady, now less than a percentage point away from its record highs, while Dow&#8217;s blue-chip stocks continue to set new record highs.
Notably, small-cap stocks have rallied the most since the Federal Reserve&#8217;s meeting, with the Russell 2000 surging over 6% in the last two sessions and breaking above the 2,000-point mark, its highest level since August 2022.
See Also: <a href="https://www.benzinga.com/markets/equities/23/12/36241143/the-disney-activist-battles-next-chapter-nelson-peltz-to-nominate-himself-former-disney-cfo-to-b">Disney Activist Battle&#8217;s Next Chapter &#8211; Nelson Peltz To Nominate Himself, Former Disney CFO To Board</a>
Treasury yields continue to trend lower, with the 10-year yield dropping to 3.9%, the lowest since late July. Meanwhile, 30-year yields are edging toward 4%, with the iShares 20+ Year Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NYSE">TLT</a>) gaining 2%.
Lower Treasury yields are also driving down mortgage rates, with the 30-year fixed average rate falling to 6.95% as of Dec. 13, according to Freddie Mac data, dipping below 7% for the first time since August.
In response, real estate stocks were the top performers among the S&amp;P 500&#8217;s sectors.
In the currency market, the dollar continued to weaken against the euro, as the latter received a more hawkish stance from the European Central Bank, which decided to keep rates unchanged and pushed back against early <a href="https://www.benzinga.com/news/23/12/36241560/ecb-president-lagarde-defies-powells-dovish-stance-not-time-to-lower-our-guard">speculations of rate cuts.</a>
Gold, tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), continues its ascent, now reaching $2,045 per ounce. Crude oil, as tracked by the U.S. Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), rose by 3.6% to $72 a barrel.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) also saw gains, rising by 0.8% to reach $43,180.
<h2 class="wp-block-heading">Thursday Performance In Major US Indices, ETFs </h2>
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<th>Major Indices &amp; ETFs</th>
<th>Price</th>
<th>% Change</th>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,000.47</td>
<td>3.0%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>37,253.86</td>
<td>0.4%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>4,726.96</td>
<td>0.4%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>16,562.51</td>
<td>0.0%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was 0.4% higher to&nbsp;$472.39, the SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) was 0.4% higher to $373.22&nbsp;and&nbsp;the Invesco QQQ Trust&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) edged 0.1% lower to $403.31, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a>
Sector-wise, the Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) rallied 3.1%. Energy, as tracked by the Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), also rallied, up 2.8%. Utilities and consumer staples were the laggards, down 0.4% and 0.5%, respectively. 
Among industries, solar stocks, as tracked by the Invesco Solar ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAN#NYSE">TAN</a>), rocketed nearly 9%. Insurance services lagged, with the SPDR S&amp;P Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KIE#NYSE">KIE</a>) down 1.3%. 
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>S&amp;P Sector ETFs</th>
<th>% Change</th>
</tr>
</thead>
<tbody>
<tr>
<td>Real Estate</td>
<td>3.1%</td>
</tr>
<tr>
<td>Energy</td>
<td>2.8%</td>
</tr>
<tr>
<td>Materials</td>
<td>1.9%</td>
</tr>
<tr>
<td>Consumer Discretionary</td>
<td>1.5%</td>
</tr>
<tr>
<td>Industrials</td>
<td>1.5%</td>
</tr>
<tr>
<td>Financials</td>
<td>1.2%</td>
</tr>
<tr>
<td>Communications</td>
<td>0.3%</td>
</tr>
<tr>
<td>Technology</td>
<td>0.0%</td>
</tr>
<tr>
<td>Health Care</td>
<td>-0.3%</td>
</tr>
<tr>
<td>Consumer Staples</td>
<td>-0.4%</td>
</tr>
<tr>
<td>Utilities</td>
<td>-0.5%</td>
</tr>
</tbody>
</table>
</figure>
<h2 class="wp-block-heading">Stocks In Focus</h2>
<ul>
<li>SolarEdge Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SEDG#NASDAQ">SEDG</a>), Enphase Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ENPH#NASDAQ">ENPH</a>) and First Solar Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSLR#NYSE">FSLR</a>) rose 16%, 12% and 9% respectively, as investors flocked to rate-sensitive stocks following the Fed&#8217;s pivot. </li>
<li>Moderna Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NASDAQ">MRNA</a>) rallied over 10% as the company announced positive trial results for an experimental mRNA-based treatment for skin cancer.</li>
<li>Align Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ALGN#NASDAQ">ALGN</a>) soared by 12% following the announcement that Health Canada has updated the company&#8217;s medical device license for its Invisalign palatal expander system.</li>
<li>Lucid Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCID#NASDAQ">LCID</a>) rallied 15%, after the company disclosed it manufactured about 800 electric vehicles (EVs) at its Saudi Arabian facility. </li>
<li>Apellis Pharmaceuticals Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APLS#NASDAQ">APLS</a>) fell 25%, after Wedbush and Wells Fargo downgraded the stock and the price target. </li>
<li>Shares of TPI Composites (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TPIC#NASDAQ">TPIC</a>) surged nearly 70% upon the company&#8217;s declaration of entering into a definitive agreement with funds managed by Oaktree Capital Management.</li>
</ul>
Read Now: <a href="https://www.benzinga.com/markets/equities/23/12/36241143/the-disney-activist-battles-next-chapter-nelson-peltz-to-nominate-himself-former-disney-cfo-to-b">The Disney Activist Battle&#8217;s Next Chapter: Nelson Peltz To Nominate Himself, Former Disney CFO To Board</a>

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US Stocks Eye 7-Day Winning Streak As Mortgage Rates Fall Below 7%, Yields Tumble: What's Driving Markets Thursday?

Wall Street was enjoying a bullish Thursday afternoon, propelled by AI stocks and tech giants, as investors grew increasingly optimistic about the disruptive technology.
Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) surged by 8% following news that Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) and Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) will harness AMD&#8217;s new AI chip, Instinct MI300X, in a challenge to Nvidia Corp.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)<a href="https://www.benzinga.com/news/large-cap/23/12/36124046/move-aside-nvidia-meta-microsoft-opt-for-new-amd-artificial-intelligence-chip"> market dominance.</a>
Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) soared by 6% as Wall Street celebrated the launch of <a href="https://www.benzinga.com/news/23/12/36127273/google-launches-gemini-ai-signals-new-era-in-artificial-intelligence">Gemini</a>, a new artificial intelligence model with the potential to close the gap in its race against Microsoft-backed OpenAI.
The Nasdaq 100 was up 1.4%, on track to deliver its best daily performance since Nov. 14.
Treasury yields remained stable on Thursday, with the market temporarily pausing its focus on monetary policy, awaiting more insights into the job market&#8217;s health with the November jobs report set to be released Friday morning.
The dollar index (DXY), as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), declined by 0.8%, primarily driven by a 2.6% drop of the greenback against the Japanese yen, the most significant movement since Dec. 20, 2022.
Gold remained steady at $2,020 per ounce, while oil continued its downward trend, slipping by 0.5% and heading for its sixth consecutive negative session.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) experienced a 1% decline following <a href="https://www.benzinga.com/markets/cryptocurrency/23/12/36118823/jp-morgan-ceo-calls-for-a-shut-down-of-bitcoin-and-the-crypto-industry-heres-how-social-me">negative remarks</a> from JPMorgan CEO, Jamie Dimon.
<h2 class="wp-block-heading">Thursday&#8217;s Performance of Major US Indices &amp; ETFs</h2>
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>Major Indices </th>
<th>Price</th>
<th>Change</th>
<th>% Change</th>
</tr>
</thead>
<tbody>
<tr>
<td>Nasdaq 100</td>
<td>16,017.51</td>
<td>+229.46</td>
<td>+1.5%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>4,583.74</td>
<td>+34.40</td>
<td>+0.8%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>185.06</td>
<td>+1.00</td>
<td>+0.5%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>36,118.93</td>
<td>+64.50</td>
<td>+0.2%</td>
</tr>
</tbody>
</table>
</figure>
<ul>
<li>The SPDR S&amp;P 500 ETF Trust&nbsp;(ARCA: <a style="font-size: revert" href="https://www.benzinga.com/stock/spy#NYSE">SPY</a>) edged 0.77% higher to $458.23. </li>
<li>The SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) was 0.2% higher to&nbsp;$361.97.&nbsp; </li>
<li>The Invesco QQQ Trust&nbsp;(NASDAQ: <a href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>) rallied 1.4% to $390.53</li>
<li>The iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rose 0.5% to $184.96, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a> </li>
</ul>
<h2 class="wp-block-heading">Chart Of The Day: Yen Takes Revenge</h2>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/07140209/USDJPY_2023-12-07_18-01-18_67020-1024x495.png" alt="" class="wp-image-157224" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/07140209/USDJPY_2023-12-07_18-01-18_67020-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/07140209/USDJPY_2023-12-07_18-01-18_67020-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/07140209/USDJPY_2023-12-07_18-01-18_67020-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/07140209/USDJPY_2023-12-07_18-01-18_67020-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/07140209/USDJPY_2023-12-07_18-01-18_67020.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">Sector, Industry ETF Performance</h2>
Communication services and technology led gains, with the Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>) and the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) up by 2.4% and 1.1% respectively. 
Energy continued to lag, with the Energy&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) down 0.7%, on track for its fourth straight sessions of losses. 
Industry-wise, airline stocks outperformed, with the U.S. Global Jets (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JETS#NYSE">JETS</a>) up 2.2%, followed by semiconductors, with the VanEck Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NYSE">SMH</a>) up 2%. Industry laggards were the VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>), down 0.9%, and the SPDR S&amp;P Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KIE#NYSE">KIE</a>), down 0.4%. 
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>Sector</th>
<th>1D%</th>
</tr>
</thead>
<tbody>
<tr>
<td>Communication Services </td>
<td>2.39%</td>
</tr>
<tr>
<td>Technology </td>
<td>1.14%</td>
</tr>
<tr>
<td>Cons. Discretionary (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>)</td>
<td>0.86%</td>
</tr>
<tr>
<td>Materials (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>)</td>
<td>0.62%</td>
</tr>
<tr>
<td>Cons. Staples (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>)</td>
<td>0.54%</td>
</tr>
<tr>
<td>Financials (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>)</td>
<td>0.32%</td>
</tr>
<tr>
<td>Industrials (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>)</td>
<td>0.10%</td>
</tr>
<tr>
<td>Real Estate (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)</td>
<td>0.05%</td>
</tr>
<tr>
<td>Utilities (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>)</td>
<td>0.02%</td>
</tr>
<tr>
<td>Health Care (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>)</td>
<td>-0.05%</td>
</tr>
<tr>
<td>Energy </td>
<td>-0.73%</td>
</tr>
</tbody>
</table>
</figure>
<h2 class="wp-block-heading">Latest Economic Data</h2>
<ul>
<li>New unemployment benefit claims held steady, with 220,000 initial claims reported for the week ending Dec. 2, broadly unchanged from the revised figure of 219,000 in the previous week. </li>
<li>Freddie Mac reported that the 30-year fixed mortgage rate fell from 7.27% to 7.03% as of Dec. 6. </li>
<li>Wholesale inventories saw a 0.4% month-over-month decline in October, surpassing the initial estimate of a 0.2% decrease and following a revised flat performance in the previous month.</li>
</ul>
<h2 class="wp-block-heading">Stocks In Focus</h2>
<ul>
<li>Walgreens Boots Alliance Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBA#NASDAQ">WBA</a>) surged by 7.6% on Thursday following the company&#8217;s announcement of an expanded range of COVID-19 and flu testing and treatment options. </li>
<li>Dish Network Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DISH#NASDAQ">DISH</a>) and EchoStar Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SATS#NASDAQ">SATS</a>) rose 8.3% and 7.8%, respectively, after receiving approval from the Federal Communications Commission for their proposed merger. </li>
<li>R1 RCM Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RCM#NASDAQ">RCM</a>) fell over 6% after Deutsche Bank lower the stock&#8217;s price target from $19 to $16. </li>
<li>Teradata Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDC#NYSE">TDC</a>) fell over 6% despite a lack of market-sensitive news. </li>
<li>Lulemon Athletica inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LULU#NASDAQ">LULU</a>) was 0.8% higher, ahead of company&#8217;s earnings report after market close. </li>
<li>Following the closing bell, Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), The Cooper Companies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COO#NASDAQ">COO</a>), DocuSign, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DOCU#NASDAQ">DOCU</a>), and Vail Resorts, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTN#NYSE">MTN</a>) will release their results. </li>
</ul>
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/12/36138288/moodys-staff-in-china-advised-to-work-from-home-amid-fear-of-government-inspections">Moody&#8217;s Staff In China Advised To Work From Home Amid Fear Of Government Inspections</a>
Photo: Shutterstock

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Wall Street Revels In Gains As AI, Tech Titans Surge; Dollar Plunges Against Yen: What's Driving Markets Thursday?

The major U.S. stock indices, closely monitored through ETFs &mdash; the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>), Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), and the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) &mdash; are all poised to finish the month <a href="https://www.benzinga.com/markets">with negative results</a>.
This will mark the first month of losses after a consecutive 5-month winning streak for both the SPY and the QQQ.
However, it&rsquo;s worth considering which industries have fared better or worse in the stock market throughout August 2023.
<img alt="" class="wp-image-98215" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/31120725/SPX_2023-08-31_17-00-35_a7d70-1024x878.png" style="height:878px; width:1024px" />
<h2 class="wp-block-heading">Top-Performing Industry ETFs In August 2023</h2>
The list isn&rsquo;t extensive, and the winners for August don&rsquo;t boast astonishing performance, underscoring the prevailing downward market trend this month.
Among the industry ETFs that have still managed to achieve positive performance during this challenging month, we can identify:
<ol>
<li>SPDR S&amp;P Oil &amp; Gas Exploration and Production (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) 
	&ndash; Monthly performance (Aug): +3.7% 
	&ndash; Year-to-date performance: +15.6% 
	&ndash; Best performing stock (Aug): Texas Pacific Land Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>) +29%</li>
<li>SPDR Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KIE#NYSE">KIE</a>) 
	&ndash; Monthly performance (Aug): +0.4% 
	&ndash; Year-to-date performance: +4.1% 
	&ndash; Best performing stock (Aug): Erie Idemnity Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ERIE#NASDAQ">ERIE</a>) +27%</li>
<li>iShares Biotechnology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBB#NYSE">IBB</a>) 
	&ndash; Monthly performance (Aug): +0.3% 
	&ndash; Year-to-date performance: -0.4% 
	&ndash; Best performing stock (Aug): Tango Therapeutics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TNGX#NASDAQ">TNGX</a>) +97%</li>
</ol>
<h2 class="wp-block-heading">Worst-Performing Industry ETFs In August 2023</h2>
The vast majority of industries showed negative returns in August, and some of them fell more sharply than the broader market.
In particular, among the worst industry ETFs this month we find:
<ol>
<li>Invesco WilderHill Clean Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBW#NYSE">PBW</a>) 
	&ndash; Monthly performance (Aug): -16% 
	&ndash; Year-to-date performance: -2.6% 
	&ndash; Worst performing stock (Aug): FTC Solar Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTCI#NYSE">FTCI</a>) -48.1%</li>
<li>Invesco Solar ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAN#NYSE">TAN</a>) 
	&ndash; Monthly performance (Aug): -15% 
	&ndash; Year-to-date performance: -20% 
	&ndash; Worst performing stock (Aug): SolarEdge Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SEDG#NYSE">SEDG</a>) -34%</li>
<li>U.S. Global Jets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JETS#NYSE">JETS</a>) 
	&ndash; Monthly performance (Aug): -9.9% 
	&ndash; Year-to-date performance: +15.6% 
	&ndash; Worst performing stock (Aug): Frontier Group Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ULCC#NYSE">ULCC</a>) -31%</li>
<li>SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) 
	&ndash; Monthly performance (Aug): -8.4% 
	&ndash; Year-to-date performance: -22.7% 
	&ndash; Worst performing stock (Aug): Customers Bancorp Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>) -17%</li>
<li>VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>) 
	&ndash; Monthly performance (Aug): -7.2% 
	&ndash; Year-to-date performance: +1.7% 
	&ndash; Worst performing stock (Aug): Hecla Mining Company Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HL#NYSE">HL</a>) -21%</li>
</ol>
Read Now: <a href="https://www.benzinga.com/general/sports-betting/23/08/34116254/exclusive-cathie-woods-sports-betting-gamble-draftkings-or-penn-entertainment">EXCLUSIVE: Cathie Wood&rsquo;s Sports Betting Gamble &mdash; DraftKings Or Penn Entertainment?</a>

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Industry ETFs In The Spotlight: August's Winners And Losers Revealed: Where Is Gold, Energy And Biotech?

March 31, 2022
To the Board of Directors of Safety Insurance Group, Inc.,
We are writing today to inform you that, in light of the numerous actions undertaken by Safety&rsquo;s Board in response to Ides&rsquo; engagement and in alignment with many of our suggested improvements, we have made the decision to withdraw our two highly qualified nominees, Olga Kondrashova and Farooq Sheikh, for election at the upcoming annual meeting of shareholders. We want to make very clear to the Board and to Safety&rsquo;s stakeholders that we have not come to this decision lightly because we firmly believe that there remain many unaddressed opportunities at Safety. Moreover, our concerns are compounded by our observation that Safety&rsquo;s shareholders are represented by a Board that institutes obvious and sorely-needed changes on a purely reactive basis. This unsatisfactory reality is evidenced by both the Board&rsquo;s hasty and &ldquo;coincidental&rdquo; decision to remedy a myriad of long-standing issues only when faced with Ides&rsquo; impending proxy fight as well as the Board&rsquo;s similarly reactive moves to rectify conspicuous governance shortcomings upon the heels of outsized engagements by other Safety investors, including their submission of shareholder proposals.
We are nevertheless gratified that Ides&rsquo; engagement with Safety has driven substantial improvement to a wide range of policies and practices and we are pleased to see what we view as recognition of these important changes through the recent increase in the Company&rsquo;s market valuation. In fact, since Ides&rsquo; December 8, 2021 delivery of our notice of intent to nominate directors, Safety&rsquo;s stock has returned +14.6%, outperforming its insurance peers by 8.5% (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KIE#NYSE">KIE</a>, +6.1%)), small capitalization companies by 22.7% (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>, -8.1%)) and the Nasdaq Composite by 23.1% (-8.5%). This outperformance represents a positive divergence from the Company&rsquo;s material underperformance relative to these same indices/ETFs over the prior 1-, 3- and 5-year periods preceding Ides&rsquo; nomination notice. Below, we summarize Ides&rsquo; suggested improvements and Safety&rsquo;s implemented responses:
<table cellspacing="0">
<tbody>
<tr>
<td>
Ides&rsquo; Proposed Enhancements
</td>
<td>
Safety&rsquo;s Implemented Responses
</td>
</tr>
<tr>
<td>
Board Refreshment
</td>
<td>
<ul>
<li>Resignation of Director Frederic Lindeberg, who in prior elections had garnered withhold votes that placed him among the lowest deciles of shareholder support with no action by the Board</li>
<li>Addition of two new and independent directors &ndash; John Farina and Deborah Gray</li>
</ul>
</td>
</tr>
<tr>
<td>
Racial, Ethnic and Multicultural Diversity
</td>
<td>
<ul>
<li>Appointment of Deborah Gray, who Ides understands to be the first racially, ethnically or multiculturally diverse director to serve on Safety&rsquo;s Board</li>
</ul>
</td>
</tr>
<tr>
<td>
Gender Diversity
</td>
<td>
<ul>
<li>First instance that Safety&rsquo;s Board has three concurrently serving gender diverse directors</li>
</ul>
</td>
</tr>
<tr>
<td>
Optimized Capital Allocation
</td>
<td>
<ul>
<li>New $50mm share repurchase plan, the first adoption of a repurchase plan increase since November 2013</li>
<li>Resumption of share repurchases in Q4 2021, representing first repurchases since September 2020</li>
</ul>
</td>
</tr>
<tr>
<td>
Improved Board Structure
</td>
<td>
<ul>
<li>Creation of Lead Independent Director role</li>
<li>Adoption of three-year term limits for committee chairs</li>
</ul>
</td>
</tr>
<tr>
<td>
Enhanced Shareholder Rights
</td>
<td>
<ul>
<li>Ability for shareholders to act by written consent</li>
<li>Ability for shareholders to call special meetings</li>
<li>Removal of supermajority voting standard and implementation of simple majority voting standard</li>
</ul>
</td>
</tr>
</tbody>
</table>
With respect to the Company&rsquo;s recently announced proposals to amend Safety&rsquo;s Certificate of Incorporation and Bylaws to permit shareholders to act by written consent and call special meetings of shareholders, while we agree these are important governance enhancements, we are disappointed with the Board&rsquo;s decision to place material restrictions on these rights and believe it reflects the Board&rsquo;s troubling pattern of window-dressing and doing the bare minimum in an attempt to appease the status quo. We also remain deeply concerned that the Company chose not to declassify the Board as part of these governance enhancements, which would have materially improved the Company&rsquo;s corporate governance profile.
Further, we note that, notwithstanding the above improvements in response to Ides&rsquo; engagement with Safety, the Board has yet to take action on several other pressing areas of concern and opportunities for improvement previously highlighted by Ides, including:
<ul>
<li>the necessity that Safety begins to behave as a public company through the implementation of quarterly and annual earnings calls, the participation in investment industry conferences and the development of relationships with the sell side analysts;</li>
<li>the need to provide shareholders with direct email contact information for at least one and preferably several of Safety&rsquo;s independent directors such that shareholders are not forced to communicate with the Board through management intermediaries;</li>
<li>the declassification of the Board;</li>
<li>the initiation of sustainability reporting;</li>
<li>the creation of a Board committee to review Safety&rsquo;s elevated expense structure as well as strategic execution and opportunities;</li>
<li>the addition of directors with insurance industry operating experience as we remain deeply concerned that the only directors with industry operational experience are current CEO and Director George Murphy and former CEO and current Chair David Brussard; and</li>
<li>the addition of directors and executives with meaningful insurance industry operational experience in digital transformation.</li>
</ul>
We look forward to Safety&rsquo;s Board continuing down its newly-found path of ESG, operational, capital allocation and strategic enhancement that improves Safety stakeholder outcomes and shareholder returns, as our nominees were prepared to implement broad-based change that we believe would unlock shareholder value in excess of +70% of current prices (implying a share price of approximately $155) over the next several years.
We believe it is incumbent upon the new Safety directors, Mr. Farina and Ms. Gray, to immediately set a tone of enhanced governance, independence and stakeholder and shareholder advocacy that represents a distinct departure from the incumbent Board&rsquo;s modus operandi. Further, we believe that Mr. Farina&rsquo;s and Ms. Gray&rsquo;s credentials as directors will be assessed in this context and, should they succeed in driving transformative change, appropriately judged apart from their boardroom peers who have, in our opinion and over many years, failed to execute on even the bare minimum expected of public company fiduciaries. Accordingly, we believe the Board, and perhaps most especially its new directors Mr. Farina and Ms. Gray, should retain any additional expertise necessary to improve operational execution, strategic performance and ESG policies and practices. This expertise could certainly take the form of the retention of ESG and strategic consultants. However, we also strongly suggest that the Board swiftly recruit at least one independent director with insurance industry operating experience, a critical attribute that each of Ides&rsquo; nominees would have brought to Safety&rsquo;s Board. On this point we want to be very clear: we have no reason to believe that the current Board is in any way equipped with the requisite operational and strategic experience and expertise necessary to effectively challenge current CEO and Director Murphy and former CEO and current Chair Brussard, the only Safety directors with insurance industry operating experience, each of whom Ides considers to be non-independent.
Finally, we remind Safety that Ides is a long-term shareholder and we will be watching the necessary forthcoming developments and improvements unfold (or fail to unfold) with great interest. We underscore that the Board has opted to not work constructively with Ides and we are therefore not subject to any arrangements nor standstill agreements. Should the Board fall short and decline to undertake additional and sorely-needed change to reverse Safety&rsquo;s underperformance, Ides will consider any and all steps to improve stakeholder outcomes and long-term shareholder value. Importantly, Ides notes that the two directors we believe to be most answerable for Safety&rsquo;s underperformance and, in their leadership positions, most accountable for its correction - Chair David Brussard and Lead Independent Director Thalia Meehan - will each stand for reelection at the 2023 annual meeting of Safety shareholders.
Regards,
Dianne K. McKeever 
Managing Member, Cofounder and Chief Investment Officer

Hedge Funds

Management

SAFT

Safety Insurance Group Shareholder Ides Capital Sends Letter To Co. Board, 'Notes that Company Has Made Significant Changes as a Result of Ides' Engagement and Announces Withdrawal of Director Nominees'

Politics

US Supreme Court Will Consider If The US Government Owes Insurers $12B In Payments Under Obamacare

Timing a Fed rate hike is no doubt tricky. But if you ask the market participants, they are almost certain that Jerome Powell led Federal Reserve will increase its benchmark rate by 0.25%, at the conclusion of the FOMC meeting on Mar 21. They further anticipate the Fed to continue their hawkish stance this year, on the back of a healthy labor market and steady rise in inflation.
With the Fed set to raise rates for the first time this year, expect financials, technology and home improvement suppliers to benefit. Home builders and utility players, on the other hand, could lose from the Fed&#39;s rate decision.
Fed Set to Hike Rates for the First Time in 2018
At the conclusion of the FOMC meeting, the Fed will issue a rate decision. Market pundits consider a quarter-percentage point rate hike a near-certainty. The futures market is already indicating 100% chance of a rate hike, culminating into the sixth rate increase since December 2015. Market participants also widely expect the Fed to project four rate hikes this year. So far, a maximum of three rate hikes are expected for the year.
But why we are expecting a hawkish Fed? This is because the current economic backdrop paints a rosy picture, especially, when you consider steady rise in wages, record low unemployment rate and upbeat consumer confidence levels. The Trump administration, in the meantime, has decided to add extra stimulus in the form of tax cuts and deregulations.
Perhaps the even more crucial factor for the Fed to hike rates is hotter-than-expected signs of inflation. Recent signs indicate that inflation is tilting toward the central bank&#39;s 2% annual target. Needless to say, the near-term inflation expectations have climbed this month to the highest level in three years. Thus, the Fed is likely to reiterate its January&#39;s statement that inflation &quot;will move up this year.&quot;
Winners &amp; Losers in a Rising Rate Environment
With an overwhelming majority of observers seeing an imminent rate hike with more to follow this year, certain sectors stand to gain, while some will suffer.
Winners: Asset-Sensitive Banks
Banks are definitely the go-to rate trade. As a general rule, higher interest rates will boost bank profits as they increase the spread between what banks earn by funding longer-term assets, such as loans, with shorter-term liabilities.
National banks like the Bank of America Corporation (NYSE: <a class="ticker" href="/stock/bac#NYSE">BAC</a>) are very much rate-sensitive and have consistently seen earnings jump from a quarter-point rate hike. In the year-to-date period, the SPDR S&amp;P Bank ETF (NYSE: <a class="ticker" href="/stock/kbe#NYSE">KBE</a>) generated steady returns of 4.2% on increasing expectations of a rate hike this month.
Winners: Insurers
Very few companies are rooting for a rate hike as much as those from the insurance industry. And why not? The relationship between interest rates and insurance companies is linear and straightforward, meaning the higher the rate, the greater the growth.
Insurers derive their investment income from investing premiums, which are received from policyholders in corporate and government bonds. Yields and coupons on these bonds rise in response to a rise in Fed fund rates and bank interest rates. This enables life insurers to invest their premiums at higher yields and earn more investment income, expanding their profit margins. Not only investment income, which is an important component of insurers&#39; top line, annuity sales should also benefit from a higher rate environment.
As of the last filing, the top three holdings of the SPDR S&amp;P Insurance ETF (NYSE: <a class="ticker" href="/stock/kie#NYSE">KIE</a>), Validus Holdings, Ltd.&nbsp;(NYSE: <a class="ticker" href="/stock/vr#NYSE">VR</a>), XL Group Ltd (NYSE: <a class="ticker" href="/stock/xl#NYSE">XL</a>) and Everest Re Group, Ltd. (NYSE: <a class="ticker" href="/stock/re#NYSE">RE</a>) have soared 44.6%, 58.1% and 18.2%, respectively, so far this year on rate hike expectations.
Winners: Asset Managers
Brokerage&nbsp;firms and asset managers advantage immensely from a rising rate environment since an increase in rates generally concurs during periods of economic strength and upbeat investor sentiments.
Notably, a wealth management firm like The Charles Schwab Corporation (NYSE: <a class="ticker" href="/stock/schw#NYSE">SCHW</a>) has said time and again that each quarter point increase in rates generally adds to interest revenue, much of which flows directly to pre-tax profits.
Winners: Technology &amp; Home Improvement
Other than the broader financial sector, technology firms also stand to gain from a rate hike. Interest rates correlate with an economy that is getting stronger day by day. And a stronger economy could easily boost the bottom lines of smartphone makers like Apple Inc. (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>) and Samsung.
Rising rates may also compel would-be home buyers to stop searching for new houses and instead look for improving their existing ones. Sesha Dhanyamraju, CEO of Digital Risk added that &quot;remodelers and home-improvement suppliers benefit from a rising-rate scenario.&quot; Thus, home improvement majors Lowe&#39;s Companies&nbsp;(NYSE: <a class="ticker" href="/stock/low#NYSE">LOW</a>) and Home Depot (NYSE: <a class="ticker" href="/stock/hd#NYSE">HD</a>) stand to gain the most.
Losers: Home Construction
But, with the Fed expected to hike rates, the average American will bear the brunt of higher borrowing costs. This is surely a dampener to real estate activities.
James Cassel, chairman and co-founder of the investment banking firm Cassel Salpeter in Miami added that if rate hike happens, losers might include &quot;construction-related businesses, like homebuilders.&quot;
Losers: Utilities
Investing in utilities won&#39;t be a good idea in a rising interest rate scenario. Utilities are capital intensive business and the funds generated from internal sources are not always sufficient to meet their requirements. Hence, these companies have high level of debt loads. Low interest rates will help them pay off debts and book profits.
But higher interest rates along with an increase in the debt level, for that matter a steep debt/equity ratio, impact the credit ratings of these utility operators. If the credit ratings go down, a company will find it difficult to borrow funds from the markets at reasonable rates, leading to a rise in cost of operations.
The industry&#39;s bellwether ETF, Utilities Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>), has yielded a negative return of 4.9% in the year-to-date period on rate hike concerns.

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Wall Street Braces For A Rate Hike: Who Wins, Who Loses

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Munster Concerned 'Insurance Cos. Which Have A Lot Of Exposure To Auto Have A Lot Further To Go Down'

Loup Ventures' Gene Munster, Discussing Autonomous Driving, Tells Benzinga,  As Probability Of Accidents, Claims Dramatically Decline, Insurers Will Find Themselves In A 'Tough Spot'

Now two weeks removed from Election Day, it is not a stretch to say one of the safest spaces of all has been the U.S. equity market. Those looking for tactical safer spaces can certainly find them with myriad sector and industry exchange-traded funds with much of that safety coming from financial services ETFs.
<h3>Financials</h3>
The Financial Select Sector SPDR Fund(NYSE: <a class="ticker" href="/stock/xlf#NYSE">XLF</a>), the largest financial services ETF, is higher by 13.2 percent, with the bulk of that gain being accrued after Election Day. XLF and rival financial services ETFs are rallying, in part, on expectations that President-elect Donald Trump will be <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/11/8688670/trump-may-not-be-all-gravy-for-bank-etfs">more friendly on the regulatory front</a> than his opponent Hillary Clinton and President Barack Obama.
<h3>Insurance Stocks And ETFs</h3>
Within the financial services space, insurance stocks and ETFs were surprising leaders while the broader sector dithered for much of this year. The theme of insurance strength has continued following Election Day, as highlighted by a November gain of 8.5 percent for the SPDR S&amp;P Insurance ETF (NYSE: <a class="ticker" href="/stock/kie#NYSE">KIE</a>). The iShares Dow Jones US Insurance Index ETF (NYSE: <a class="ticker" href="/stock/iak#NYSE">IAK</a>) is higher by 9.5 percent this month.
IAK is a cap-weighted fund while KIE is an equal-weight ETF. Much of the market&#39;s ebullience toward insurance ETFs is also attributable to a more sanguine regulatory under Trump.
&ldquo;Broad financial industry deregulation under the Trump administration would ease regulatory burdens for large insurance companies while macroeconomic trends resulting from shifting global and economic policies could have a significant impact on profitability, premium growth and investment performance,&rdquo; said <a href="https://www.fitchratings.com/site/pr/1015116">Fitch Ratings</a> in a note out Monday.
ETFs such as KIE could be further bolstered into year end if the Federal Reserve moves forward with an interest rate increase at its December meeting.
Insurance ETFs&#39; rising rates advantage is tied to the strong dollar. The stronger greenback effects an array of sectors and industry groups, but not insurance companies because U.S.-based insurance providers write the bulk of their <a href="http://www.thestreet.com/story/13220377/1/insurance-etfs--another-idea-for-profiting-from-rising-rates.html">policies in the United States</a>.
Insurance is the third-largest industry weight in XLF at 19.3 percent and three insurance stocks are found among the ETF&#39;s top 10 holdings.
<h3>Dodd-Frank Act</h3>
&ldquo;The potential repeal or amendment of the Dodd-Frank Act is a case in point. The designation of systemically important bank and non-bank financial institutions (SIFIs) falls under the Financial Stability Oversight Council (FSOC).
&ldquo;SIFIs in the US face higher regulatory standards and three insurers &mdash; Prudential Financial Inc (NYSE: <a class="ticker" href="/stock/pru#NYSE">PRU</a>), American International Group Inc (NYSE: <a class="ticker" href="/stock/aig#NYSE">AIG</a>) and Metlife Inc (NYSE: <a class="ticker" href="/stock/met#NYSE">MET</a>) &mdash; were designated as such in 2014. Fitch believes a Trump administration could promote a pullback on insurance SIFI designations via a less inclusive approach following changes in FSOC leadership or via changes to the Dodd-Frank act itself.
&ldquo;MetLife won a court ruling in March that rescinded its SIFI designation and the Trump administration may choose not to follow through on an appeal,&rdquo; added Fitch.
Disclosure: Todd Shriber owns shares of XLF.

Long Ideas

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Fed fund futures now say traders are paring bets that the Federal Reserve will raise interest rates later this month; but in August, inflows to financial services exchange-traded funds indicated otherwise.
Financial services, the S&amp;P 500&#39;s second-largest sector allocation behind technology, is lagging the benchmark U.S. equity index this year, as investors have become frustrated with the Fed&#39;s vague guidance regarding when borrowing costs will move higher. For example, the Financial Select Sector SPDR Fund (NYSE: <a class="ticker" href="/stock/xlf#NYSE">XLF</a>), the largest financial services ETF, is up 4 percent year-to-date, while the S&amp;P 500 is higher by 8.5 percent.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/08/8403632/even-with-no-fed-help-this-financial-etf-soars">Even With No Fed Help, This Financial ETF Soars</a></bzrelatedlink>
<h3>Focusing On Financials</h3>
&ldquo;S&amp;P Global Market Intelligence banking equity analyst Erik Oja thinks higher interest rates would be a positive for many companies he follows particularly the largest US banks, which have a lot of short-term investments which immediately benefit. For example, by his calculations, revenues for JPMorgan Chase &amp; Co. (NYSE: <a class="ticker" href="/stock/jpm#NYSE">JPM</a>) were aided by $220 million in the first quarter of 2016 due to the December 2015 rate hike. Regional banks benefit more when market-driven long-term rates rise,&rdquo; said<a href="http://trymsatoday.com/"> S&amp;P Capital IQ</a> in a note out Wednesday.
XLF&#39;s primary rival, the Vanguard Financials ETF (NYSE: <a class="ticker" href="/stock/vfh#NYSE">VFH</a>), added nearly $502 million in new money last month, while XLF saw August inflows of over $471 million. S&amp;P Capital IQ has overweight ratings on XLF and VFH and a four-star rating on Dow component JPMorgan, the largest U.S. bank by assets. 
As S&amp;P Capital IQ notes, there are important differences between XLF and VFH.
<h3>XLF And VFH Are Not The Same</h3>
&ldquo;VFH includes small- and mid-cap companies not inside the S&amp;P 500 index and in addition at the beginning of September it sold its stake in REITs as part of the GICS changes that created an 11th sector. XLF plans to pay a special dividend equal to its REIT exposure to shareholders in mid-September when the S&amp;P 500 index rebalances,&rdquo; said the research firm.
As was recently <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/08/8403632/even-with-no-fed-help-this-financial-etf-soars">noted in this space</a>, the SPDR S&amp;P Insurance ETF (NYSE: <a class="ticker" href="/stock/kie#NYSE">KIE</a>) has been one of the best-performing financial services ETFs this year even with no help from the Fed. However, investors took profits in KIE last month. 
&ldquo;KIE incurred $61.4 million in net outflows, narrowing year to date inflows to $10.6 million,&rdquo; noted S&amp;P Capital.
Still, KIE has outpaced XLF and VFH year-to-date.
<a href="https://pro.benzinga.com/?utm_source=Benzinga&amp;utm_medium=Benzinga%20Top%20of%20Article&amp;am%22%3">Full ratings data available on Benzinga Pro.</a>
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email <a href="mailto:feedback@benzinga.com">feedback@benzinga.com</a> with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!
Disclosure: Todd Shriber owns shares of XLF.

Rate Hike Bets Spurred August Inflows To Financial ETFs

Perhaps more than any other sector, financial services, the second-largest sector weight in the S&amp;P 500, would like to see the Federal Reserve raise interest rates. Better yet, financial services stocks wouldn&#39;t mind multiple rate hikes.

	Within the financial services sector, some industry groups are more dependent on higher rates than others. Regional banks take the cake on that front, but insurance providers also stand to benefit from hawkish Fed action.

	Insurance ETFs deserve some credit for being positively correlated to rising Treasury yields. Simply put, steeper yield curves are advantageous<a href="http://www.benzinga.com/trading-ideas/long-ideas/15/08/5730304/forget-deductibles-and-premiums-look-at-insurance-etfs"> for insurance providers</a>. In other words, the SPDR S&amp;P Insurance ETF (NYSE: <a class="ticker" href="/stock/kie#NYSE">KIE</a>) deserves some credit for recently making a series of all-time highs. KIE was one of just 12 ETFs to do so on Monday, extending its year-to-date gain to over 8 percent. That is more than double the year-to-date return of the Financial Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlf#NYSE">XLF</a>).

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/16/08/8401373/7-wall-street-firms-interpret-yellens-jackson-hole-speec">7 Wall Street Firms Interpret Yellen&#39;s Jackson Hole Speech</a></bzrelatedlink>

	Insurance ETFs&#39; rising rates advantage is tied to the strong dollar. The stronger greenback affects an array of sectors and industry groups, but not insurance companies because U.S.-based insurance providers write the bulk of their&nbsp;<a href="http://www.thestreet.com/story/13220377/1/insurance-etfs--another-idea-for-profiting-from-rising-rates.html">policies in the US</a>.

	The results of the Fed&#39;s CCAR open the door for XLF holdings to increase dividends and buybacks, an important factor when considering many XLF&#39;s holdings, although sources of dividend growth in recent years, still sport payouts below those seen prior to the financial crisis. Insurance providers, including some residing in KIE have been generous in terms of increasing dividends and buybacks in recent years.

	KIE is an equal-weight ETF, a strategy that&#39;s proving rewarding for investors this year as the fund has outperformed the cap-weighted iShares U.S. Insurance ETF (NYSE: <a class="ticker" href="/stock/iak#NYSE">IAK</a>) by a margin of better than 2-to-1.

	XLF, the largest financial services ETF by assets, allocates 16.4 percent of its weight to insurance providers, making that group the ETF&#39;s third-largest industry weight behind banks and real estate.

	The $570.6 million KIE allocates 38.8 percent of its weight to property and casualty insurers and another 24.7 percent of its lineup to life and health insurance providers. Reinsurance, insurance brokers and multi-line firms combine for over a third of the ETF&#39;s weight.

	Disclosure: The author owns shares of XLF.

Even With No Fed Help, This Financial ETF Soars

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Brad Simpson On The Election, Economy, And Why Markets Are Ready To Get 'Back To Business'

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