Banking pillar avoids slide in CE100 index
To find the bright spots from a dismal week and where investors have found at least a safe haven, look to the banks.
And a few lone names in health shopping and defensive games – no matter the economic situation, people still get sick and still need treatment.
Group by group: In a week that saw the global Connected Economy 100 (CE100™) index fall 3.5%, the banking pillar was the only one to post positive performance, up around 3 %.
In a rising rate environment and following earnings results where tech names were hit — in a volatile week when the index was down 1.5% — it might make sense for banks to represent flight to relative safety. After all, the rate hike hasn’t hit loans yet, which means interest earned on loans will be higher, as will net interest margins.
To that end, names like Citigroup rose 7.1% and Ally Bank gained 4.8%. Additionally, JP Morgan Chase jumped 3.7%.
In company-specific news related to those names, Citi unveiled Single Euro Payments Area (SEPA) Instant Payments in Europe, its latest instant payments offering. The company said its launch will allow customers to pay and receive funds from 36 SEPA countries instantly.
See also: Citi launches SEPA Instant Payments in Europe
There are signs that investors are eyeing some relief from defensive stocks as well, particularly in the healthcare sector, where McKesson and Aetna posted mid- to high-single-digit gains (the “Be Well” rose by around 10 basis points over the week).
However, at the other end of the spectrum, the “Shop” group was down more than 8%, the “Work” pillar was down 5.5% and payments fell during the week to end, as group, by more than 5.2%.
In this trading pillar – ironically, noted above as the hardest hit group – well, that’s where you’ll find the best performing stock in the entire index, rising more than 10% over the week following the profits.
As PYMNTS noted after Pinterest released its first quarter results, the social platform is putting commerce at the center of 2022 growth plans.
CEO and co-founder Ben Silbermann has smashed Pinterest’s emerging strategy to make the platform more buyable — a trend seen at Meta and others in the space trying to make up for ad dollars lost to recent changes in marketing. Apple on iOS Data Privacy. The company uses a three-pronged strategy for its procurement; Silbermann said he started with a verified merchants program and moved on to more advanced product download catalog capabilities.
Related: Pinterest makes itself more buyable as the platform positions commerce to take over ads
That performance, however, was not enough to boost the shopping sector, driven in part by declines in names like Cognex, down 19.7% ahead of earnings this week.
Relative performance CE100
While there is persistent evidence that payments continue to experience secular change, the fact that pay-and-be-paid names have declined by 5% in the last five sessions belies at least some skepticism about rates. sustainable growth.
Block/Square stands out here. Director Jack Dorsey and Chief Financial Officer Amrita Ahuja told analysts that following its acquisition of Afterpay in January, the company’s latest results indicate that Buy Now, Pay Later (BNPL) is helping to generate repeat transactions with consumers and increase seller conversion.
By integrating Afterpay’s BNPL functionality with the Square Online and e-commerce application programming interface (API) in the US and Australia, approximately 13,000 Square merchants have adopted and processed BNPL sales in the first trimester.
Read more: 13,000 Square merchants recorded BNPL sales in the first quarter