Financial-sector exchange traded funds (ETFs) were flat in afternoon trading Tuesday despite big moves in individual components after a flood of earnings reports.
MasterCard (NYSE: MA) rose nearly 3% after its quarterly update, while Legg Mason (NYSE: LM) and Hartford (NYSE: HIG) shares were in retreat after their reports.
“MasterCard reported strong first-quarter results, exceeding our above-consensus expectations,” said analysts at Duncan-Williams in a note.
“While the stock has rebounded sharply following Durbin-related concerns, we are reiterating our strong buy rating here as global volumes continue to accelerate, the company is benefitting from higher gas prices, foreign currency should be a significant tailwind in the near-term, and we think the valuation on the stock remains compelling,” they wrote.
Separately, Legg Mason shares were under attack Tuesday, shedding more than 7% at last check. Chief Executive Mark Fetting said costs in its Western Asset Management fixed-income unit will rise $74 million in the fiscal year, Bloomberg reported.
Also Tuesday in financials, Hartford shares dropped 2% as the insurer was cautious on share buybacks and dividends, MarketWatch reported.
Financial Select Sector SPDR Fund (NYSEArca: XLF) was little changed at last check.
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