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

Citigroup: Jobs Report Loser

NEW YORK ( TheStreet) -- Citigroup (C - Get Report) was the loser among the largest U.S. banks on Wednesday, with shares falling 4% to close at $42.50.

The broad indices all saw 1% declines after Automated Data Processing said private sector nonfarm employment in the U.S. grew by 158,000 in March, declining from an upwardly revised 237,000 in February. ADP also lowered its January private sector employment growth number to 177,000 from 215,000.

Economists polled by Thomson Reuters had estimated the ADP figure for March would show 200,000 new jobs being added. ADP said there were no new construction jobs added during March and, on a net basis, "average monthly gains of 29,000 in the three months prior." ADP also said that manufacturing employment grew by 6,000 during March.

Moody's Analytics chief economist Mark Zandi said in a press release, "Construction employment gains paused as the rebuilding surge in the wake of Superstorm Sandy ended," in March, and "anticipation of Health Care Reform may also be weighing on employment at companies with close to 50 employees."

The theme of slowing service-sector growth was underlined by a drop of the Institute for Supply Management's non-manufacturing index to 54.4% in March from 56.0% in February. An index reading above 50% indicates economic expansion. Economists were expecting the ISM non-manufacturing index reading for March to be 55.8%

The KBW Bank Index (I:BKX) was down 2% to close at 54.68, with all 24 index components showing declines for the session. Stocks of major banks showing 3% declines included Bank of America (BAC), with shares closing at $11.81, and State Street (STT), which closed at $56.92.


Citi's shares have returned 7% this year, following a 51% return during 2013. The shares are cheaply valued, relative to most components of the KBW Bank Index, trading for 0.8 times their reported Dec. 31 tangible book value of $51.19, and for 8.1 times the consensus 2014 earnings estimate of $5.22, among analysts polled by Thomson Reuters. The consensus 2013 EPS estimate is $4.61.

Following the completion of the Federal Reserve's annual stress tests, Citigroup surprised some investors by saying on March 31 that it hadn't requested regulatory approval to raise its dividend from a token penny per quarter, although the company did request and receive approval for up to $1.2 billion in share buybacks through the first quarter of 2014.
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%
AAPL $93.74 -1.15%
FB $118.00 1.10%
GOOG $693.01 0.29%
TSLA $240.76 -2.81%


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