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, SunTrust: Jobs Report Winners

NEW YORK (TheStreet) -- Bank stocks surged Friday as a stronger-than-expected jobs report fueled a rally across major U.S. equity markets.

The Bureau of Labor Statistics reported non-farm payrolls rose by 195,000 in June as the unemployment rate remained unchanged at 7.6%. Economists polled by Thomson Reuters anticipated non-farm payrolls to have added 165,000 jobs.

The report upwardly revised May employment numbers to 195,000 from 175,000. The 12-month average sits at 182,000 jobs added per month.

The strong labor numbers suggested that the Fed could begin to taper its quantitative easing efforts as early as September, as indicated by the central bank Chairman last month. Yields on the 10-year Treasury rose to 2.726%

Concerns that June's encouraging jobs report could prompt the Fed to curb its stimulus measures were offset by prospects that the U.S. economic recovery may be gaining sufficient strength to survive on its own.

Financials were among the biggest winners on Friday. Shares of the biggest four banks --Bank of America (BAC) JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC) rose by 1.8%, 2.3%, 1.8% and 2% respectively.

Regional banks, which given their domestic focus are more levered to the economy than universal banks, outperformed on Friday. Shares of KeyCorp (KEY) and SunTrust (STI) and Zions (ZION) rose more than 4%.

Banks had a strong week, with the KBW Bank Index rising 6%. Earlier this week, the Federal Reserve finalized capital rules under Basel III, but warned that too-big-to-fail banks can expect more rules that would raise their capital requirements as early as next week.

However, analysts at Fitch Ratings said Friday that the big banks can meet tougher capital requirements.

Banks also kick off earnings next week, with JPMorgan Chase as usual opening the season with its results announcement on Friday.

-- Written by Shanthi Bharatwaj in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • 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