Stocks fell as techs declined while banks and energy were higher. At the close the Dow was off 167 to 21,167. IBD how has the rally under pressure as the month of June has seen higher trading volumes on down days and lower trading volume on up days. This signals that big buyers are taking money off the table which is a note of caution. For the week the Dow was off about 0.4%.
For the first time in 7 years the Feds granted all 34 Bank stress test participants approval of their capital plans whereby they return money to shareholders via dividends or buybacks. The results were stunning. Here are some of the divvy increases: Bank of America 60%, Citigroup 100%, JP Morgan 12%, Morgan Stanley 25%, Key Bank 11%, PNC Bank 36%, US Bank 7% and last but not least Wells Fargo 3%. Besides the dividend increases these banks also announced share buyback plans to include $19.4 billion for JP Morgan, $12 billion for Bank of America and $15 billion for Citigroup. Bank shares across the board were higher on the news.
Meal kit delivery service Blue Apron came public today with shares priced at the low end of the range. Trading began at $10 per shares and moved up about 9%. The IPO was expected to be hot but when Amazon bought Whole Foods it threw cold water on the food and grocery sector. Jeff Bezos, CEO of Amazon has an old saying: “Your margins are my opportunity”. I could just imagine John Wayne saying that.
Staples Office Supply was purchased today for $6.9 Billion by Sycamore Partners. The deal takes Staples private and comes a year after the company was not allowed to merge with Office Depot.