Interest rate hikes are weighing on investment firms as they adjust to Fed actions aimed at controlling inflation. Shares of these five well-known financial companies are selling so fiercely that each makes it onto the “new 52-week low” list, not exactly an honor.
Anticipation of further rate hikes is not helping equities in this sector. Nor is OPEC’s decision to cut oil production another factor when it comes to inflation. And it didn’t help that Vladimir Putin kept hinting at how mad he might be going.
All of these different types of fear add up to new lows for this group.
Here is the daily price chart for AllianceBernstein Holdings (NYSE:AB)
This September selloff brought the price back below the May low, so a downtrend is confirmed. The direction of the 200-day moving average has been downward since mid-April and now the 50-day moving average is joining in the downside. AllianceBernstein may be oversold as indicated by the RSI.
Take a look at DigitalBridge Group Inc daily price chart (NYSE: DBRG)
Note how the stock was priced at $30 in April and has now more than halved with a current price of $12.50. Both major moving averages are trending down and the price of the DigitalBridge group is well below both. The RSI, below the price chart, shows an oversold reading.
This is Franklin Resources daily price chart
The stock is trading below the 200-day moving average and the 50-day moving average, a bearish reading. Both of these moving averages are now trending lower as Franklin Resources hits the new 52-week low. It appears to be in an oversold range, according to the RSI.
Here is the daily price chart for Blackrock Inc (NYSE:BLK)
The new 52-week low comes with the stock trading well below the 200-day moving average and the 50-day moving average. For Blackrock to turn bullish again, it would need to get back above these 2 moving averages, just to start. The relative strength indicator indicates an oversold status.
This is Janus Henderson Group PLC daily price chart (NYSE: JHG)
As with the other four stocks listed above, this one looks bearish with the new low well below both significant moving averages. Note that the 200-day and 50-day moving averages are trending lower and have been for weeks.
Since this is October, the month best known for its history of significant market lows, it’s possible that bargain hunters will rush in and create a rally from here. If investors conclude that interest rate fears are priced in at these levels, buyers could perhaps take over from the sellers.
Much may hinge on Thursday’s Consumer Price Index release from the US Bureau of Labor Statistics.
No investment advice. For educational purposes only.