Last week was busy for traders. The jobs report cooled hopes for a quick Fed rate cut, and tech stocks slowed. Meanwhile, health‑care and financial stocks kept climbing, out‑performing the S&P 500.
As we move into the second half of the year, industrials and financials are on winning streaks. Industrials have risen for seven straight weeks, and financials for five weeks, setting the stage for upcoming earnings reports.
Banks Head Into Earnings
The bank sector is hot. The SPDR S&P Bank ETF (KBE) hit a record high last Thursday, then slipped a bit. Big names like JPMorgan Chase and Bank of America have surged ahead of their earnings reports, which can set a high bar for the rest of the quarter.
KBE shows classic bullish signs: higher highs, higher lows, and a rising 200‑day moving average. The RSI is near 70, confirming the recent price peak. Even when the ETF pulled back in early April, it quickly filled the gap and stayed on an uptrend.
The rally from $62 in early June to just under $70 suggests the move may pause before the earnings season fully unfolds. KBE holds mostly small‑ and mid‑size banks, while the larger‑cap Financials Select Sector SPDR Fund (XLF) posted its best two‑day gain since April 2025.
Insurance Leads the Pack
While banks draw attention, insurance stocks have been the real winners. The SPDR S&P Insurance ETF (KIE) jumped 18% since early June, with a strong breakout that points to a price target near $70.
Credit Card Giants Shine
Credit‑card companies are also pulling ahead. Visa and Mastercard have each risen about 15% this month, outpacing many tech and AI stocks. Their earnings are due at the end of July, giving traders time to prepare.
Watch the Weak Spots
Not all financial stocks are shining. Goldman Sachs and Morgan Stanley have slipped about 4% and a little less, respectively. Their charts show key support levels around $985‑$1,000 for Goldman and $205 for Morgan Stanley. A break below could trigger a head‑and‑shoulders decline.
Berkshire Hathaway, the insurance‑heavy conglomerate, has risen nearly 10% since early June and sits just under 2% from its 52‑week high. It’s quietly gaining while the market focuses on AI and momentum plays.
Bottom Line
Financial stocks have many stories right now. Big banks will be in the spotlight as earnings start on July 14, but hidden gems are emerging in insurance, credit‑card firms, and Berkshire Hathaway. These areas may offer the next wave of strong returns.
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