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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Commerce Bancshares: Financial Winner

NEW YORK ( TheStreet) -- Commerce Bancshares (CBSH - Get Report) was the winner among the largest U.S. financial names on Thursday, with shares rising 2% to close at $39.28.

The broad indexes all declined, despite a U.S. Labor Department report that initial jobless claims for the week ended July 7 declined to 350,000 from an upwardly revised 376,000 the previous week. Unemployment claims for the week ended July 7 were at their lowest level since March 2008, but some economists were skeptical that the numbers showed real economic improvement, because of seasonal factors.

The KBW Bank Index (I:BKX) declined over 1% to close at 44.46, with all 24 index components showing declines for the session, except for Commerce Bancshares.

Investors' eyes early on Friday will turn to JPMorgan Chase (JPM - Get Report), which will report its second-quarter results at 7AM, with analysts polled by Thomson Reuters estimating a profit of 72 cents a share, declining from $1.31 during the first quarter, and $1.27 during the second quarter of 2011.

JPMorgan's shares declined 2% to close at $34.04. The shares are now down 16% since closing at $40.74 on May 10, right before CEO James Dimon disclosed a hedge trading loss by its Chief investment Office (CIO) estimated at "slightly more than $2 billion." Dimon said that as the company wound down the hedge trading positions, the losses might climb higher, and the New York Times reported on June 28 that cumulative losses from the trades could eventually total as much as $9 billion, while the Wall Street Journal reported on Wednesday that the trading losses could total $5 billion.

JPM Chart JPM data by YCharts

JPMorgan's shares are cheaply priced, trading just below their reported March 31 tangible book value of $34.91, and for six times the consensus 2013 earnings estimate of $5.29 a share, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is $4.21.

Based on a 30-cent quarterly payout, the shares have a dividend yield of 3.53%.

RBC Capital Markets analyst Gerard Cassidy rates JPMorgan Chase "Outperform," with a $50 price target, saying on Thursday that "if the gross trading losses are $5 billion or less and the company can prove it has "ring fenced" the problem, the stock will rally (assuming its core businesses report solid-to-good results)." On the other hand, the analyst said that "trading losses above $5 billion and a discovery that the CIO contributed a high percentage to historical earnings would likely lead to the stock 'selling-off', in our opinion."

Interested in more on JPMorgan Chase? See TheStreet Ratings' report card for this stock.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG
CBSH $41.92 0.00%
JPM $61.77 0.00%
WFC $55.55 0.00%
AAPL $129.09 0.00%
FB $79.75 0.00%

Markets

DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

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