MetLife shares gain the most in a week, operating profit from interest rates to increase by $300 million

According to an 8-K filing with the US Securities and Exchange Commission released Thursday, the S&P 500-featured insurer MetLife Inc projected additional $300 million in operating profit through 2019 as a result of higher interest rates in the country. The company also noted it would be confronted with challenges in some businesses abroad as well as with expenses for a cost-cutting program.

MetLife shares registered their largest daily gain since December 7th on Thursday, rebounding after a modest drop during the previous trading session. The stock went up 1.58% ($0.89) to $57.28, after surging as high as $58.09 during yesterdays session, or a level not seen since July 16th 2015. In the week ended on December 11th MetLife shares gained 3.11% compared to a week ago to mark their fifth consecutive period of advance and also the best weekly performance since the week ended on November 13th. The stock has extended its advance to 4.13% so far during the current month, after climbing 17.14% in November. The latter has been the stock’s best performance since October 2011. Back then MetLife shares appreciated 25.53%.

MetLife now expects a profit boost of $45 million during the upcoming year, $105 million in 2018 and $150 million in 2019, as the Federal Reserves policy tightening cycle develops.

At its December 13th-14th meeting on monetary policy the Federal Reserve Bank lifted the target range for the federal funds rate by 25 basis points to 0.50%-0.75% in line with market expectations, while forecasting 3 quarter-point rate hikes in 2017, up from 2, as projected previously.

On the other hand, the insurers baseline operating earnings from operations in Latin America may shrink by approximately 10% next year, mostly as a result of Mexican Pesos depreciation, the filing revealed.

In addition, the NYSE-listed insurance company would suffer pre-tax expenses at the amount of $300 million in 2017 in relation with a cost-cutting program, which it had already announced this year.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the MetLife stock are presented as follows:

R1 – $57.41
R2 – $57.55
R3 (Range Resistance – Sell) – $57.68
R4 (Long Breakout) – $58.08
R5 (Breakout Target 1) – $58.55
R6 (Breakout Target 2) – $58.76

S1 – $57.15
S2 – $57.01
S3 (Range Support – Buy) – $56.88
S4 (Short Breakout) – $56.48
S5 (Breakout Target 1) – $56.01
S6 (Breakout Target 2) – $55.80

By using the traditional method of calculation, the weekly levels of importance for MetLife Inc (MET) are presented as follows:

Central Pivot Point – $56.77
R1 – $58.40
R2 – $59.40
R3 – $61.03
R4 – $62.65

S1 – $55.77
S2 – $54.14
S3 – $53.14
S4 – $52.13