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
TheStreet Open House

Zions Tanks on Slow Loan Growth: Financial Loser (Update 1)

Stocks in this article: ZIONRFSTTI:BKX

FBR analyst Paul Miller has a "market perform" rating on Zions, and on Tuesday maintained his $28 price target but cut his 2014 EPS estimate for the company to $2.00 from $2.05. "The company experienced weaker loan growth this quarter than it had for the past six quarters as loan balances were flat almost across the board," Miller wrote in a note to clients.

Zions' management indicated Monday that C&I loan growth might resume during the fourth quarter because of an increase in unfunded loan commitments. "If there is continued economic uncertainty, however, loan growth will likely remain lackluster, which would impede earnings growth," Miller wrote.

Employment Numbers and Federal Reserve Policy

The broad indices all ended higher, after the Department of Labor released its employment report for September, which was delayed two weeks by the partial shutdown of the federal government that ended last Thursday. The Labor Department on Tuesday said the U.S. economy added 148,000 nonfarm jobs during September and that the national unemployment rate improved to 7.2% during September from 7.3% in August.

Economists polled by Reuters had, on average, expected September payrolls to grow by 180,000, with the unemployment rate remaining at 7.3%.

The Labor Department said, "The employment change for July was revised down by 15,000 (from +104,000 to +89,000), and the employment change for August was revised up by 24,000 (from +169,000 to +193,000)." Average monthly employment growth for the past 12 months was 185,000.

The relative weakness in the September employment numbers may well reinforce investors' expectations that the Federal Open Market Committee (FOMC) will once again decide to stand pat with "QE3" stimulus policy for the Federal Reserve. The Fed has been making monthly purchases of $85 billion in long-term securities since September 2012 in an effort to hold down long-term interest rates.

Investors had long expected the FOMC to "taper" the central bank's bond purchases, leading up to the committee's last meeting on Sept. 17 and 18, and the market rate on 10-year U.S. Treasury bonds had risen by nearly 100 basis points from the end of April until that meeting.

2 of 3

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 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

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