This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Banks Climb as Data Quiet Talk of Fed Tapering: Financial Winners

NEW YORK ( TheStreet) -- Stocks of large U.S. banks showed strength on Friday as disappointing economic reports shed light on the quandary facing the Federal Open Market Committee when it decides whether or not to curb the Federal Reserve's "QE3" bond purchases next week.

The KBW Bank Index (I:BKX) rose slightly to close at 63.68, with , with 15 out of 24 index components ending with gains.

Big banks seeing shares rise nearly 1% included JPMorgan Chase (JPM - Get Report), with shares closing at $52.59, as investors shrugged off a Wall Street Journal report that the bank would add 5,000 employees to handle regulatory compliance and risk-management problems, and that related expenses and provisions for litigation reserves would total $4 billion during the second half of 2013.

Other large banks seeing shares rise nearly 1% included U.S. Bancorp (USB - Get Report) of Minneapolis, with shares closing at $37.14 and Huntington Bancshares (HBAN - Get Report) of Columbus, Ohio, at $8.52.

The Commerce Department on Friday estimated that U.S. retail sales during August grew by 0.2% from July and 4.7% from August 2012. The month-over-month growth rate was down from an upwardly revised 0.4% in July. Economists polled by Thomson Reuters had estimated August sales would show a sequential increase of 0.4%.

The Reuters/University of Michigan consumer sentiment reading for September was 76.8, which was the lowest level since April. Economists surveyed by Thomson Reuters were expecting a reading of 82.

Pulling Back on QE3

As part of its third round of quantitative easing the Federal Reserve has been making monthly purchases of $40 billion in long-term mortgage-backed securities and $45 billion in long-term U.S. Treasury bonds since September of last year, in an attempt to hold long-term rates down.

The FOMC at its next meeting September 17-18 is expected by many economists to begin a modest reduction of the central bank's monthly bond purchases, in light of comments by committee members over the past few months. The market has pushed the yield on 10-year U.S. Treasury bonds up to 2.89% from 1.70% at the end of April. The yield on the 10-year did decline by two basis points on Friday, mirroring the stock market's reaction to the disappointing economic reports.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG
HBAN $10.94 0.00%
JPM $61.28 0.00%
USB $44.61 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

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