This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Banks Bounce Back, Modestly: Financial Winners

Stocks in this article: JPM NYCB CBSH FNFG ZION

NEW YORK ( TheStreet) -- Bank stocks staged a modest recovery on Wednesday, after taking their worst pounding in over two years in yesterday's session.

The KBW Bank Index (I:BKX) rose just 0.1% to close at 62.45 though all but eight of the 24 index components ended with gains. The broad indices fared better. The Dow Jones Industrial Average and S&P 500 (SPX.X) ended with gains of 0.3% while the NASDAQ Composite posted an increase of 0.4%.

Among large U.S. banks, the winner was New York Community Bancorp (NYCB) as shares advanced 1.4% to close at $14.96. With a quarterly payout of 25 cents, New York Community has one of the highest dividend yields on common shares in the banking industry with a yield of 6.68%.

Large banks that recorded gains close to 1% included Commerce Bancshares (CBSH) of Kansas City, Mo., which closed at $44.02; First Niagara Financial Group (FNFG) of Buffalo, N.Y., closing at $10.38; and Zions Bancorporation (ZION) of Salt Lake City, which ended the session at $28.16.

Shares of JPMorgan Chase (JPM) were down only two cents to $50.58 despite continued flow of leaks from federal regulators about large fines the company is facing.

Housing Drags on Rising Rates

Following Tuesday's fear over the buildup to possible military action against the government of Syria by the United States and its traditional allies, financial names were stalled by mediocre housing data, declining refinance applications and an inventory shortage in several major markets.

The Mortgage Bankers Association on Wednesday said its Market Composite Index for the week ended Aug. 23 was down 2.5% from the previous week. The Market Composite index measures total residential loan application volume.

The MBA's Refinance index was down 5% from the previous week, and was down over 64% from its peak early in May.

The average rate for a conforming 30-year fixed-rate mortgage loan during the week ended Aug. 23 was 4.8%, rising sharply from 4.7% the previous week. A "conforming" mortgage loan is one that meets the basic underwriting of Fannie Mae and Freddie Mac, with a loan-to-value ratio of 80% or lower, and a principal balance of $417,000 or less. Rates on conforming mortgage loans hit their highest level since April 2011.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs