Market Extra: Bank ETFs bounce, with this fund heading for potentially best month since 2021

by | Jul 18, 2023 | Stock Market

Exchange-traded funds that buy bank stocks jumped Tuesday as investors assessed Wall Street’s latest batch of second-quarter earnings results from giants including Bank of America and Morgan Stanley. The Invesco KBW Bank ETF
closed up slightly more than 3% Tuesday, while the SPDR S&P Regional Banking ETF
surged 4.2%, according to FactSet data. Morgan Stanley
finished among the S&P 500’s best-performing stocks Tuesday, after reporting earnings that beat expectations even as its quarterly profit dropped from a year earlier, with its shares soaring 6.5%.

​”It was a busy morning as Morgan Stanley posted mixed results, while Bank of America impressed,” said Edward Moya, senior market analyst for the Americas at Oanda, in a note Tuesday. ​“We are done with the majority of the big banks and the overall takeaway is that they did ok despite a weakening economy and all the turmoil that stemmed from the regional banking crisis last quarter. The SPDR S&P Regional Banking ETF, which tracks an equal-weighted index of U.S. regional bank stocks, on Tuesday saw its best daily performance since June 6 , according to FactSet data. The fund has surged 12% so far this month, putting it on track for potentially its strongest monthly performance since February 2021, FactSet data show.

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