This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

JPMorgan, Wells Fargo Among Regional Banks That Are Vulnerable

NEW YORK (TheStreet) - At the beginning of July all 24 components of the KBW Banking Index had positive weekly chart profiles. Five had overbought 12x3xx3 weekly slow stochastic readings and 19 had rising stochastics. These readings can be found in my first "crunching the numbers" published on July 7.

BB&T Bank (BBT) was the only bank to miss earnings per share estimates. This bank reported on July 21 and missed by 5 cents. This stock was up 7.1% year to date on July 3 and is down 7.4% since then.

Read More: Kass: Avoid Most Social Media Stocks

Regions Financial (RF) and Wells Fargo (WFC) were the only banks to match analysts EPS estimates. Regions Financial was up 9.9% year to date and is down 6.7% since then. Wells Fargo was the biggest year to date gainer on July 3, up 17% and is down 4% since then.

The largest earnings beat was posted by Capital One (COF) by 27 cents. Capital One had a year to date gain of 11% on July 3 and is down 6.4% since then.

Better-that-expected earnings from regional banks was anticipated as 18 of 24 set their July highs by July 16.

In today's first "crunching the numbers" table 15 show declining 12x3x3 weekly slow stochastics, five are overbought and four have rising stochastics.

On July 3 I showed that all 24 banks were above their five-week modified moving averages. Today 15 are below their five-week modified moving averages.

Only five banks are higher than their July 3 closes. The best gainers are Northern Trust (NTRS) up 3.1% and Bank of New York (BK) up 2.9%.

The biggest losers since July 3 are PNC Financial (PNC) down 8.2% and BB&T down 7.4%.

In my July 7 post, "Wells Fargo, PNC Financial Lead 24 Banks in the KBW Banking Index" I warned that earnings from regional banks may disappoint based upon data from the FDIC.

Read More: 4 Stocks Warren Buffett Is Selling in 2014

On June 4 I wrote, "Bank Stocks Have Staged a Nice Rebound, but Don't Expect It to Last". In this post I mentioned that the FDIC Quarterly Banking Profile for the first quarter showed a decline in earnings do to reduced noninterest income such as a slower decline in reserves for losses and lower asset sales.

1 of 3

Select the service that is right for you!

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 17,680.87 +324.00 1.87%
S&P 500 2,049.44 +36.55 1.82%
NASDAQ 4,729.0410 +84.7290 1.82%

Brokerage Partners

Rates from

  • 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