This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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!

M&T Bank: Financial Winner

Stocks in this article: MTB I:BKX

NEW YORK ( TheStreet) -- M&T Bank (MTB) of Buffalo, N.Y., was the winner among large U.S. banks on Wednesday, with shares rising 1.7% to close at $114.64.

The broad indices ended lower, after the Federal Open Market Committee (FOMC), as expected, made no change to the Federal Reserve's "QE3" stimulus policy. The KBW Bank Index (I:BKX) was down 0.2% to 64.93, with the 24 index components evenly split between winners and losers.

The Fed has been making monthly net purchases of $45 billion in long-term U.S. Treasury securities and $40 billion in long-term agency mortgage-backed securities since September 2012, in an attempt to hold down long-term interest rates. The FOMC on Wednesday made hardly any changes in its statement on from the September statement.

The Fed's main policy tool is the short-term federal funds rate, which has remained in a target range of zero to 0.25% since late 2008. The FOMC has repeatedly said it expects "this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored."

The Department of Labor last week said the U.S. unemployment rate in September improved slightly to 7.2% from 7.3% in August. The FOMC on Wednesday said "Apart from fluctuations due to changes in energy prices, inflation has been running below the Committee's longer-run objective, but longer-term inflation expectations have remained stable."

Sterne Agee chief economist Lindsey Piegza had an interesting reaction to the FOMC's statement that the labor market has "shown some improvement: "Really? The unemployment rate has declined from 8.1 to 7.3% in part because the participation rate continues to wane but more importantly, job creation has slowed from +200k to just +140k a month on average."

Piegza in a note to clients following the FOMC statement release wrote that one of the major challenges to the Fed is to make it clear to the market that the eventual end to the "QE3" bond purchases does not mean the central bank will also raise short-term rates.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
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!

Markets

DOW 17,880.83 +76.03 0.43%
S&P 500 2,071.75 +1.10 0.05%
NASDAQ 4,770.7030 +5.3230 0.11%

Brokerage Partners

Rates from Bankrate.com

  • 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