Sector Wrap: Financial, Retail, Food & Beverage
Thursday, October 1, 4:30 PM ET

Leading the news this week has been the financial sector which saw asset sales continuing from the major banks. Citigroup (NYSE:C) finalized the sale of its Japanese brokerage unit today in a deal valued at $8.7 billion. Citigroup said it expects to realize an immaterial after-tax gain on the sale in the fourth quarter. Also selling assets this week was Bank of America (NYSE:BAC). The troubled bank is selling its long-term asset management unit to Ameriprise Financial (NYSE:AMP) in a deal worth $900 million to $1.2 billion depending on asset flows.

Investors turned bearish on financials mid-week, sending the iShares Financial Sector ETF (AMEX:IYF) down more than two percent today and off more than one half of one percent on the week.

The food & beverage sector received a boost this week when Citigroup initiated coverage on Coca Cola (NYSE:KO) and Dr. Pepper / Snapple (NYSE:DPS). The investment firm rated both companies as a Buy, setting a price target of $35 for Dr. Pepper / Snapple and a $61 price target for Coca Cola.

However, tumbling markets on Thursday ate into those gains, leaving the PowerShares Food & Beverage ETF (AMEX:PBJ) close to even on the week.

And the retail sector saw mixed news this week. Walgreens (NYSE:WAG) announced better-than-expected earnings this week of forty four cents per share as same store sales increased 2.4% in the quarter. While the earnings drove stocks higher on Tuesday, the excitement was tempered by Wal-Mart's (NYSE:WMT) cautious outlook on the global economic recovery and UBS's downgrade of Target (NYSE:TGT).

The Retail HOLDRs ETF (AMEX:RTH) has relinquished most of its gains, as it now trades higher by less than one percent this week.