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

Bank Stocks Recover on Shutdown Day 4: Financial Winners

NEW YORK ( TheStreet) -- Zions Bancorporation (ZION - Get Report) of Salt Lake City was the winner among the nation's largest banks on Friday, with shares 2.5% to close at $27.76.

The broad indices all ended with solid gains, as congressional Republicans appeared more willing compromise on a deal to restore full government services and avert a default. Banks led the market, with the KBW Bank Index (I:BKX) rising 1.2% to close at 62.98, with all 24 index components ending with gains.

According to a Washington Post report, "Privately, a number of GOP lawmakers are pushing for a shift from what they view as a futile debate on health-care to exploration of a broader deal to reduce the nation's debt." The unnamed sources for the report were quoted as saying House Speaker John Boehner (R., Ohio) had vowed not to allow the U.S. to default on its debt.

U.S. Treasury Secretary Jack Lew in a letter to Boehner on Sept. 28 said the "extraordinary measures" the Treasury was taking to maintain its borrowing power will "be exhausted no later than Oct. 17," unless the $16.7 trillion federal debt limit is raised.

During a press conference on Friday, Boehner continued to take a tough line, saying the budget impasse leading to the partial shutdown of the federal government on Tuesday, "isn't some damn game. But after 55 years of spending more than you bring in, something ought to be addressed. This year we'll have more revenue than any year in the history of our country and yet still have a nearly $700 billion deficit."

Market optimism Friday was also fed by the filing of plans by Twitter for a $1 billion public offering, and the successful initial public offering by Potbelly (PBPB).

For bank stocks investors, earnings season begins early next Friday, when Wells Fargo (WFC) and JPMorgan Chase (JPM - Get Report) announce their third-quarter results.

In his third-quarter earnings preview for large-cap U.S. banks, KBW analyst Christopher Mutascio on Thursday wrote "Unfortunately, it seems to us that the fate of the bank stocks (in terms of positive catalysts) is now tied directly to the macro-economic environment. A breakout of the GDP malaise could allow for further multiple expansion and outperformance."
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
ZION $25.88 -0.19%
BAC $14.05 -0.57%
C $44.23 -0.96%
JPM $61.24 -0.54%
AAPL $93.24 -0.41%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs