Heading into Hurricane Weekend, with word that New York's transit systems would be shut down on Saturday at noon, the broad indexes were up, as investors seemed happy with Federal Reserve Chairman Ben Bernanke's speech at the Federal Reserve Bank of Kansas City's economic symposium in Jackson, Wyo. Meanwhile, the Commerce Department cut its second-quarter economic growth estimate to 1% to 1.3%, which wasn't a surprise to the market.
The KBW Bank Index (I:BKX) rose over 1% to close at 38.12, with 23 of the 24 index components rising for the session.
Comerica (CMA) was up over 2.5% to close at $24.01.Large banks seeing rounding out the week with 2% gains included BB&T (BBT), which closed at $20.72; Capital One (COF), closing at $44.23; Commerce Bancshares (CBSH), at $38.20; Goldman Sachs (GS), at $111.75; Huntington Bancshares (HBAN), at $4.90; M&T Bank (MTB), at $74.39; New York Community Bancorp (NYB), at $12.50; Regions Financial (RF), at $18.79; and Zions Bancorporation (ZION), which closed at $16.25. Based on a quarterly dividend payout of 25 cents, New York Community Bancorp's shares have a dividend yield of 8%, which is, by far, the highest dividend yield among the 100 largest banks by total assets -- excluding those traded on the Pink Sheets -- according to SNL Financial. Large banks seeing shares rise over 1% on Friday included Bank of America (BAC), closing at $7.65; JPMorgan Chase (JPM), at $36.21; KeyCorp (KEY), at $6.42; and SunTrust (STI), at $18.79. Friday's financial losers with 1% declines were Wells Fargo (WFC), which closed at $24.59, and Morgan Stanley (MS), closing at $16.61. Guggenheim Securities analyst Marty Mosby on Thursday reiterated his "buy" rating for Wells Fargo but lowered his 12-month price target for the shares to $32 from $35, "to reflect the effect of a flattening yield curve" on the company's net interest margin, which is the difference between a bank's yield on loans and investments and its average cost for loans and deposits. Mosby added that Wells Fargo's "strong capital and liquidity positions coupled with proactive risk management expertise provide WFC more than enough capital cushion to absorb even worst-case losses under a second recession scenario."
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