The broad indexes all saw slight gains, after the initial reading on the University of Michigan consumer sentiment index for August came in at 73.6, the highest level since May and above the consensus expectation of 72.4, according to Zacks. The Conference Board's Leading Economic Index rose 0.4% in July, to 95.8 after a 0.4% decline in June.
Conference Board economist Ataman Ozyildirim said that the majority of the index components improved during July, "led by large contributions from housing permits and initial unemployment claims," adding that the index's "six-month growth rate seems to be stabilizing, pointing to a continuing but slow expansion in economic activity for the rest of the year."
The KBW Bank Index (I:BKX) rose slightly to close at 1% to close at 47.23, with all but four of the 24 index components rising for the day.Zions Bancorporation's shares have now returned 21% year-to-date, following a 33% decline during 2011. The shares trade for just above their reported June 30 tangible book value of $19.65, and for 11 times the consensus 2013 earnings estimate of $1.75 a share, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is $1.14. Zions owes $700 million in federal bailout funds received in November 2008 through the Troubled Assets Relief Program, or TARP, having repaid $700 million in TARP money during the first quarter. The company on July 23 reported second-quarter earnings applicable to common shareholders of $55.2 million, or 30 cents a share, increasing from $25.5 million, or 14 cents a share, during the first quarter, and $29.0 million, or 16 cents a share, during the second quarter of 2011. The earnings improvement mainly reflected "dividends and other investment income from private equity investments," primarily at its Amegy subsidiary. The second-quarter results were also boosted by a $32 million release of loan loss reserves. Jefferies analyst Ken Usdin rates Zions a "Hold," with a price target of $21, and said after the company announced its second-quarter results that "the core
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