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

KeyCorp: Buyback Anticipation Winner

Stocks in this article: RF KEY CMA I:BKX

NEW YORK ( TheStreet) -- KeyCorp (KEY) of Cleveland was the winner among the largest U.S. banks on Wednesday, with shares rising 1.5% to close at $10.01.

The broad indices all rose slightly after the Census Bureau released its advance estimate that retail sales during February rose 1.1% from the previous month and 4.6% from a year earlier. The sales figures were not adjusted for price increases. Economists on average expected retail sales in February to increase just 0.5% from the previous month, according to Zacks.

Excluding vehicle sales, retail sales in February were up 1.0% from January, ahead of the consensus estimate of an increase of 0.5%.

There were various factors weighing on retail sales, including the end of the temporary 2% cut in the Social Security payroll tax in January, with many workers not being affected until their first 2013 paychecks rolled in on Jan. 15. Deutsche Bank economist Joseph LaVorgna earlier on Wednesday his firm was "projecting slightly below consensus numbers for February retail sales because we believe that a delay in tax refunds could temporarily depress spending," underlining another reason why the Census Bureau's report was a positive surprise.

The KBW Bank Index (I:BKX) rose slightly to close at 56.93, with all but two of the index components showing gains for the session.

Thursday Is Capital Return Day

The Federal Reserve on Thursday at 4:30 p.m. EST, will announce the results of the Comprehensive Capital Analysis and Review of the banks' capital plans through the first quarter of 2014. At roughly the same time, most of the nation's large banks are expected to announce plans to return capital to investors through dividend increases or share buybacks.

Returning capital to investors is the order of the day for banks, with soft loan demand in most areas except for commercial and industrial lending, "which is looking pretty frothy," says Tom Day, a senior director at Moody's Analytics.

Since bank's "don't have asset allocation choices" in the low rate environment, Day says "the choice you have is to give money back to shareholders or look for acquisitions." But for banks looking for deals, "the multiples are not exactly where they want them, because Bernanke has done a great job destroying deposit premiums completely," he says.

1 of 2

Select the service that is right for you!

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!


DOW 17,779.78 +1.63 0.01%
S&P 500 2,065.16 +3.93 0.19%
NASDAQ 4,757.5590 +9.1630 0.19%

Brokerage Partners

Rates from

  • 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