The stress test results of U.S. banks have shown that they are in a ‘good’ place, according to top bank analyst Mike Mayo of Wells Fargo. Mayo stated that the Federal Reserve’s stress test was more severe than the 2008 global financial crisis, but U.S. banks have proven to be resilient and in a very good position.
One surprising result from the stress test was Citigroup, whose shares were marginally higher during Thursday’s trading session. Citigroup’s performance has been strong, with shares up about 19.7% this year.
In other news, after the bell, some lesser-known stocks made moves based on financial releases. Health technology stock Accolade fell more than 27% due to softer-than-expected guidance for the current quarter, despite exceeding analyst expectations for the first fiscal quarter. On the other hand, American Outdoor Brands climbed more than 8% on strong earnings in its fiscal fourth quarter.
A survey from eToro revealed that most retail traders own financial stocks, with 54% holding financial services stocks compared to 49% holding technology stocks. This indicates that retail investors may not be as interested in highly volatile stocks as previously thought.
However, Nike shares sank about 11% in extended trading after posting its third revenue miss in four quarters and cautionary guidance for the new fiscal year. The weaker consumer environment has impacted sales, with North America and Asia/Latin America revenues falling short of Wall Street’s expectations.
Overall, stock futures were near flat shortly after 6 p.m. ET, with Dow futures slipping 0.1% and S&P 500 and Nasdaq 100 futures inching higher. The market remains steady as investors digest the latest news and data.
