This Day On The Street
Continue to site
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

BB&T Leads Banks Higher on Mixed Economic Data

NEW YORK (TheStreet) -- BB&T Corp. (BBT - Get Report) was the banking sector leader on Thursday, with shares rising 2% to close at $35.37.

The broad indices ended with losses, while the KBW Bank Index I:BKX rose 0.5% to 66.78, with all but eight of the index components ending with gains.

Thursday's economic news was also mixed.  The Census Bureau reported that U.S. retail sales during November rose 0.7% from October to $432.3 billion.  The increase was higher than the consensus estimate of a 0.6% increase among economists polled by Reuters.  November's retail sales were up 4.7% from a year earlier.  The Census Bureau also made an upward revision to their October retail sales growth figure, showing an increase of 0.6% from September, when the original estimate was an increase of 0.4%.

Excluding auto sales, retail sales in November were up 4% from October to $349.0 billion. Economists on average had expected these sales to increase by just 0.2%.

Also on Thursday, the Labor Department said first-time U.S. unemployment claims for the week ended Dec. 7 rose by 68,000 to 368,000, from the previous week's revised upwardly revised figure of 300,000.  Economists had expected initial claims for last week to come in at 330,000, reflecting typical holiday season volatility.

The continuing increase in retail sales, along with last week's huge revision of estimated third-quarter U.S. gross domestic product growth to an annual rate of 3.6% from the previous estimate of 2.8%, along with decline in the unemployment rate to 7% in November from 7.3%, will all be factored into the discussions of the Federal Open Market Committee when it meets on Dec 17-18.

A bull market can easily be spooked by fears of higher interest rates, and the Federal Reserve will eventually slow its massive "QE3" balance sheet expansion, that has been meant to hold long-term rates down.  The central bank has been making net monthly purchases of $85 billion in long-term U.S. Treasury bonds and agency mortgage-backed securities since September 2012.

According to Sterne Agee chief economist Lindsey Piegza, the November retail sales growth in part reflected a "temporary reprieve from pump prices," as well as the rise in home prices and the bull market for stocks.  However, Piegza still sees consumers "losing momentum with growth falling from a peak of near 9% in 2011."

"Consumers will need sustained job creation and income growth, which unfortunately do not go hand in hand," Piegza wrote in a client note on Thursday.  She predicted last week that the improved GDP and unemployment rate wouldn't be enough for the Fed to decide to taper bond purchases in December.

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
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
BBT $37.78 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs