QFIN - Kinsale Capital drops WTW climbs in earnings-packed week: Financials roundup

2023-10-28 10:19:00 ET

Financial stocks slid with the wider stock market in the week that saw a deluge of corporate earnings, in addition to a slew of stronger-than-expected economic data that could give the Federal Reserve a reason to keep rates higher for longer.

The Financial Select Sector SPDR ETF ( NYSEARCA: XLF ) retreated 2.3% for the week ended Oct. 27, slightly outpaced by the S&P 500's 2.5% slump .

The biggest loser among financial stocks (with market cap over $2B) this week was P&C insurer Kinsale Capital Group ( NYSE: KNSL ), tumbling 19.3% on the heels of worse-than-expected revenue for Q3;

Taking the second slot, U.K. lender NatWest Group ( NYSE: NWG ) cratered 17.8% after turning in lackluster earnings ;

Western Union Company ( NYSE: WU ) plunged 14.1% despite posting Q3 earnings that topped Wall Street expectations and improving its 2023 outlook ;

Electronic bond trading platform MarketAxess Holdings ( NASDAQ: MKTX ), which had also published Q3 earnings during the week, shed 12.5% ; and

Rounding out the five biggest decliners, Barclays ( NYSE: BCS ) fell 11.7% on the back of lower-than-expected Q3 profit as well as an analyst downgrade .

For the winners, Willis Towers Watson ( NASDAQ: WTW ) took the lead, climbing 11.2% , as strong demand and cost discipline buoyed the insurance broker's Q3 results ;

PennyMac Financial Services ( NYSE: PFSI ) scaled higher by 9.6% as the real estate finance company delivered mixed Q3 results ;

Qifu Technology ( NASDAQ: QFIN ), a Shanghai-based fintech, gained 8.4% ;

Capital One Financial ( NYSE: COF ) advanced 8.3% after the bank posted Q3 earnings and revenue that exceeded consensus estimates, driven by growth in its domestic card business; and

Germany's Deutsche Bank ( NYSE: DB ) perked up 8.1% after boosting its outlook for capital distributions to shareholders.

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