The video that this transcript is based on appeared on November 25.
NEW YORK ( TheStreet) -- A drop in oil prices is not enough to sustain early stock buying. Alpine's Peter Kovalski talks financials.
Welcome to after-hours action I'm Gregg Greenberg from TheStreet. US stocks started the short trading week mixed as the parent nuclear deal with Iran took some the froth of crude thereby bolstering the global economic outlook. Let's wrap up the market the S&P closed down two points on the DOW is a 8 to 16,000 72 the Nasdaq points higher at $39.95. Oil which spurred buying in the morning was down 66 cents to 94 20 barrel. As for individual stocks Alcoa was up 4 percent to 960, as Goldman Sachs raise the shares to a buy from hold. Based on its exposure to the aerospace and automotive industries. Goldman's analyst races when your target to 11 from 8, and Burger King shares finished 2.5 percent higher after the fast food franchise also got a vote of confidence from Goldman Sachs which initiated coverage with a Buy rating of forecasting annual earnings what 18 percent to 20 percent. Finally shares of Wal-Mart finished up 80 basis points today the world's largest retailer named Doug McMillon as its next chief executive officer a Wal-Mart life for Macmillan was widely predicted to succeed CEO Mike Duke.
Now financial stocks have been huge gainers in 2013 the SB financial sector ETF the XLF is up 31 percent this year compared to the overall S&P which is up 27 percent. If you've been a Peter Kovalski's Alpine Financial Services fund however you be doing even better up 38 percent year-to-date. Earlier today I asked Peter Kovalski's for his 2014 outlook and to name his paper financial stocks.
Peter Kovalski's: financial such a fantastic year 2013 what makes you think they can do it again next year?
The sector is very economically sensitive, so I have a view that the economy is slowly coming out of its recession as it picks up steam that should be more beneficial for the financial sector in increasing their profitability.
One stock you like as Blackstone has the private equity industry learn something from the credit bubble blacks on stocks up eighty percent this year so obviously they do pretty well.
Well Blackstone and its peers came public around the top the last IPO market so I don't think history has really seen the true operating leverage that these companies have and due to the performance fees and the have ability to raise capital right now other one other few sectors within the as asset management area that's really been growing organically through attracting additional investment so I think where you're going but the street will be a surprise that is I think estimates will move kid will move up if we get into a more robust IPO market.
Alright, speaking of IPOs, you're also a fan of the Intercontinental Exchange, this stock also put on a great run up over seventy percent this year. They bought the New York Stock Exchange you think they're gonna be able to extract the synergies that everyone predicts they can?
I think they will the that this is really a milestone career transaction for them that's really can propel on to the next level. It's gonna broaden out their platform which I think I'll be able to leverage on a global basis.
Alright you also like LPL Financial we've seen a trend towards more independent brokers people even the big shops whether it be Merel or Smith Barney, they want to set out on their own they get a higher pay that way is that your reason for liking LPL?
Yeah, LPL is really a good well play on the trend that we're talking about love more independence, investment advisors the you're there leaning my view the kinda leading the field in providing that service for people want to be independent advisors.
And then finally Southern National Bancorp this is a small capital Virginia-based bank I hadn't heard of it, tell me all about it.
Well, one of the things I have with in the financial sector is the consolidation the community banking industry, and looking for by bank so benefit from either acquirer or being acquired. This institution right now it's been in
inquisitive mode in purchasing some franchise some companies to build their franchise I think it at the end will probably be an attractive franchise for a larger institution wants to move into that market. The companies is run by our husband-wife team that had run a bank before in the same market built it up and sold it, I would expect that may be there same game plan for this one.
Thanks again the Peter Kovalski from Alpine Funds, and thank you for watching after-hours action for TheStreet,
--Written by Gregg Greenberg in New York.