Capital One stock soars amid layoffs

Yahoo Finance Live checks out Capital One shares amid growth seen in the financial sector.

Video transcript

- Kicking off today is Capital One. The stock rising. It's a top performer in the S&P. Now, the Street applauding the company's move to set aside a higher than expected loan loss provisions. So Capital One setting aside $2.4 billion. Putting that in perspective, that's about 30% more than what the Street was expecting. In a note to clients, BMO writing that Capital One is doing what its peers have not so far this earnings season. And that's positioning itself appropriately ahead of the credit cycle.

Now, Capital One also posting an increase in the fourth quarter driven by higher net interest income and non-interest income. You're looking at gains of just about 9% today. So certainly taking some of its competitors with it to the upside, Brooke. Financials the top performer sector wise in the markets today.

BROOKE DIPALMA: Yeah. Seana, it's important to note here that this rally does come after the company announced layoffs just last week. That actually impacted their IT department. Now, that is unique to Capital One. It's not something that we're seeing at the larger widespread layoffs that's currently sweeping across multiple sectors. In that layoff round, they did let go of about 1,100 employees. So quite the day for a rally. Important to note that here.