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Sector Update: Financial

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Financial stocks were edging higher premarket Thursday, with the State Street Financial Select Sector SPDR ETF (XLF) advancing by 0.1%.

The Direxion Daily Financial Bull 3X Shares (FAS) was up 0.2% and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 0.3% lower.

Barclays (BCS) is preparing to sell about $875 million of debt financing to support Blackstone (BX) and Tinicum's acquisition of UK aerospace supplier Senior, Bloomberg reported, citing unnamed sources familiar with the matter. Shares of Barclays were nearly 1% higher pre-bell.

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Sectors

Sector Update: Energy Stocks Gain Late Afternoon

Energy stocks were higher late Wednesday afternoon, with the NYSE Energy Sector Index and the State Street Energy Select Sector SPDR ETF (XLE) each adding about 1.2%.The Philadelphia Oil Service Sector Index was gaining 2.4%, and the Dow Jones US Utilities Index was decreasing 0.8%.Crude oil prices jumped after President Donald Trump threatened additional strikes against Iran tonight, saying the ceasefire with Tehran was over. The US struck Iran on Tuesday after Tehran attacked three tankers that crossed the Strait of Hormuz. Iran's Islamic Revolutionary Guard Corps hit US military targets across Bahrain and Kuwait in retaliation to Washington's attacks, CNN reported. The US will likely hit Iran again tonight, Trump said Wednesday at a NATO summit in Turkey.Front-month West Texas Intermediate crude oil rose 4.4% to $73.53 a barrel, and the global benchmark Brent crude contract climbed 5.2% to $78.01 a barrel. Henry Hub natural gas futures fell 1.4% to $3.22 per 1 million BTU.US crude oil stocks, including those in the Strategic Petroleum Reserve, fell by 3.2 million barrels in the week ended July 3 following a decrease of 9.3 million barrels in the previous week. Excluding inventories in the SPR, commercial crude oil stocks rose by 3.0 million barrels after a 3.8-million-barrel decline in the previous week, compared with a 1.9-million-barrel drop expected in a survey compiled by Bloomberg.In corporate news, Occidental Petroleum (OXY) shares gained 3.3% after Evercore ISI upgraded the stock to outperform from underperform and raised its price target to $65 from $58.ConocoPhillips' (COP) strong operations in fiscal Q2 should offset Middle East headwinds, with the firm likely to repeat production and equity affiliate distribution projections for the fiscal year, UBS Securities said in a note. ConocoPhillips shares rose 1.7%.Chevron's (CVX) Chevron Technical Center and ZL Chemicals signed a technology licensing deal that allows ZL to commercialize Chevron-developed chemical surfactant technology, they said Wednesday. Shares were up 1.2%.Baker Hughes (BKR) will provide power generation services to support Kodiak Gas Services' (KGS) energy infrastructure initiatives under a new multiyear agreement, the companies said. Baker Hughes shares popped 4.9%.

$BKR$COP$CVX$OXY
Sectors

Sector Update: Financial Stocks Fall Late Afternoon

Financial stocks were lower in late Wednesday afternoon trading, with the NYSE Financial Index falling 1.7% and the State Street Financial Select Sector SPDR ETF (XLF) dropping 1.8%.The Philadelphia Housing Index fell 3.5%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) was down 1.5%.Bitcoin (BTC-USD) was declining 1.9% to $62,133, and the yield for 10-year US Treasuries rose 4 basis points to 4.569%.In economic news, US Federal Reserve officials held diverging views last month on the appropriate path of interest rates, minutes from the central bank's June policy meeting showed Wednesday. The Federal Open Market Committee unanimously decided to maintain its policy rate between 3.50% and 3.75% for the fourth consecutive time at the June 16-17 meeting. At the time, it removed the so-called easing bias from its policy statement.Separately, the International Monetary Fund lowered global economic growth expectations for 2026 as the impact of the Middle East war will likely counter a boost from rising AI adoption.In corporate news, Block (XYZ) will pay $45 million as part of a multistate settlement to resolve allegations that its Cash App failed to protect users from fraud and provide a fraud protection and resolution mechanism as required by law, Nebraska Attorney General Mike Hilgers said Wednesday. Block shares were down 1.8%.Truist Financial (TFC) faces a tough road ahead amid a leadership change and higher interest rates, BofA Securities said, joining other brokerages that recently downgraded their ratings on the regional bank. BofA lowered Truist's rating to neutral from buy, with a price target of $56. The downgrade follows recent rating cuts by Morgan Stanley, UBS Securities and Raymond James. Truist shares were down 3.6%.Saratoga Investment (SAR) reported a decline in fiscal Q1 net investment income per share late Tuesday, falling more than the market had anticipated. Its shares fell 14%.Lemonade's (LMND) recent share price rally has largely priced in the company's growth and earnings outlook, leaving limited room for additional upside without new catalysts, Morgan Stanley said in a note. Morgan Stanley downgraded the stock to equal weight from overweight with a price target of $75. Lemonade shares slumped past 8%.

$LMND$SAR$TFC$XYZ
Sectors

Sector Update: Consumer Stocks Lower in Late Afternoon Trading

Consumer stocks declined late Wednesday afternoon with the State Street Consumer Staples Select Sector SPDR ETF (XLP) falling 0.4% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) dropping 1.9%.In corporate news, Domino's Pizza's (DPZ) Q2 results are expected to reflect near-term pressure from macro headwinds, elevated promotional activity, and difficult comparisons, UBS Securities said. Domino's shares fell 3%.Tesla's (TSLA) expansion into Miami saw Robotaxis debuting with fewer drivers and without people acting as safety monitors in passenger seats during early rides, The Information reported. Tesla shares fell 2.4%.Paramount Skydance's (PSKY) $110 billion bid to acquire Warner Bros. Discovery (WBD) is facing a new hurdle after Oregon Attorney General Dan Rayfield said he will ask a local court to pause the merger for 60 days, Reuters reported. Paramount shares fell 2.9%.Estee Lauder (EL) approved an additional $197 million in restructuring and related charges, bringing total costs under a recovery and growth plan to $1.75 billion. The latest charges comprise $74 million in employee-related costs, $87 million in asset-related costs and smaller contract-termination and exit costs, the company said Tuesday. Estee shares fell 3.3%.

$DPZ$EL$PSKY$TSLA$WBD