This Day On The Street
Continue to site
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

Banks Gain on Jobs Data: Financial Winners

NEW YORK ( TheStreet) -- Regions Financial (RF - Get Report) was winner among the largest U.S. banks on Friday, with shares rising 4% to close at $7.59.

The Dow Jones Industrial Average (^DJI) rose 0.5% while the other broad indexes showed smaller gains after the Bureau of Labor Statistics said that nonfarm payrolls rose by 155,000 in December, down from an upwardly revised 161,000 in November. Economists, on average, were expecting nonfarm payrolls to increase by 150,000 in December, according to

Private nonfarm payrolls increased by 168,000 in December, declining from an upwardly revised 171,000 the previous month, but coming in significantly higher than the 148,000 was estimated by economists.

The national unemployment rate was unchanged at 7.8% after the November figure was revised from 7.7%.

The government's December employment figures were much lower than those reported by Automatic Data Processing on Thursday. ADP said that the U.S. economy added 215,000 nonfarm private sector jobs during December, UBS economist Maury Harris said in a note early Thursday that "the Dec estimates can be fluky," as the company's December employment estimates were significantly higher than the governments during the preceding two years. "If firms laid off fewer people in 2012 than in 2011 (and fewer in 2011 than 2010), their end-of-year reconciliations of their payroll records can result in a falsely high ADP estimate," he said.

Also on Friday, the Institute for Supply Management said that its ISM services index "registered 56.1 percent in December, 1.4 percentage points higher than the 54.7 percent registered in November. This indicates continued growth at a slightly faster rate in the non-manufacturing sector." Economists on average expected a reading of 54.2. The ISM Employment Index "increased by 6 percentage points to 56.3 percent, indicating growth in employment for the fifth consecutive month at a significantly faster rate."

The KBW Bank Index (I:BKX) rose 2% to close at 53.73, with 23 of the 24 index components showing gains of at least 1%, except for New York Community Bancorp (NYCB - Get Report), which was down 1% to close at $13.34.

New York Community pays out 25 cents a share per quarter, for a dividend yield of 7.50%, which is among the highest yields on common shares in the industry. The company has maintained the dividend for 35 consecutive quarters, although the dividend payout is quite high, considering that the company's quarterly earnings have ranged between 27 cents and 30 cents a share over the past year.
1 of 2

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
C $46.28 -0.96%
NYCB $15.03 -0.33%
RF $9.38 -0.42%
AAPL $93.74 -1.15%
FB $117.58 0.73%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs