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

Bank of New York Mellon Rises on Mixed Day for Bank Stocks

NEW YORK (TheStreet) -- Bank of New York Mellon (BK) was the leader among large-cap U.S. bank stocks on Wednesday, with shares rising over 1% to close at $33.32.

The broad indices all ended lower, after the Department of Commerce said October retail sales rose 0.4% from September and were up 3.9% from October 2012. This was the largest sequential increase in consumer spending in four months. The consensus among economists polled by Thomson Reuters was for consumer spending during October to be unchanged from September.

A sharp decline in gasoline prices helped push the U.S. Consumer Price Index down for the first time in six months. The Bureau of Labor Statistics said the October CPI was down 0.1% from September, although it was up 1% from October 2012. "The gasoline index fell 2.9 percent in October and led to the seasonally adjusted decline in the all items index," The Bureau of Labor Statistics said in its press release, while "Other energy indexes were mixed, with the electricity index rising, but the indexes for fuel oil and for natural gas declining."

Economists had expected no change in the October CPI from September.

Lower fuel and oil prices during October were especially timely, and could bode well for holiday sales in November and December.

The negative reaction to a decent set of economic numbers in the broad market reflects continued uncertainty over the timing of the expected tapering of Federal Reserve bond purchases. The central bank has been making net monthly purchases of long-term U.S Treasury bonds and agency mortgage-backed securities since September 2012. The Federal Open Market Committee's next meeting will take place Dec. 17-18, but most economists expect no change this year in the Fed's "QE3" stimulus policy.

Sterne Agee chief economist Lindsey Piegza in a note to clients on Wednesday echoed this view, writing that "This morning's report coupled with Chairman Bernanke's comments last night regarding the disappointing nature of the latest employment reports, all but assures that tapering is now a 2014 (or beyond) event."

Bank stocks fared better than the broad market on Wednesday, with the KBW Bank Index (I:BKX) falling slightly to close at 66.29.

The biggest sector news on Wednesday was the continued reaction to the landmark $13 billion mortgage settlement between JPMorgan Chase (JPM), the Department of Justice, federal regulators and states' attorneys general.

JPMorgan's shares pulled back slightly % to close at $56.03.

Please see TheStreet's extensive coverage for what the largest regulatory settlement in U.S. history means for JPMorgan, for distressed homeowners, for New York attorney general Eric Schneiderman and for investors:

Bank of New York Mellon

Shares of Bank of New York Mellon have returned 31% this year.  The shares trade for 2.5 times their reported Sept. 30 tangible book value of $13.36, and for 13.3 times the consensus 2014 earnings estimate of $2.50 a share, among analysts polled by Thomson Reuters.  The consensus 2015 EPS estimate is $2.79.

Based on a quarterly payout of 15 cents, the shares have a dividend yield of 1.80%.

The company's return on average tangible common equity for the first three quarters of 2013 was 15.12%, declining from 18.12% for all of 2012 and 22.58% in 2011, according to Thomson Reuters Bank Insight.

Please see TheStreet's detailed earnings coverage for more information on Bank of New York Mellon's performance.


BK ChartBK data by YCharts

Interested in more on Bank of New York Mellon? See TheStreet Ratings' report card for this stock.

>Contact by Email.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

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 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

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