NEW YORK ( TheStreet) -- Regions Financial ( RF) of Birmingham, Ala., was the loser among large U.S. banks on Thursday, with shares sliding 2.5% to close at $9.88. The Dow Jones Industrial Average
KBW analyst Chris Mutascio on Wednesday said JPMorgan offers the best value to investors among large-cap U.S. banks, because of its discounted valuation to peers and because of its highly liquid balance sheet. JPMorgan's shares rose 0.6% to close at $55.14. Wells Fargo is expected by analysts to report second-quarter earnings of 93 cents a share, up a penny from the previous quarter and increasing from 82 cents a year earlier. Investors will be eager to see how much the company's mortgage revenue declined during the quarter. Unlike its peers, Wells Fargo reports gains on the sale of newly originated mortgage loans when the loans are actually sold, and not when rates are locked on new loans. This means the company is "one quarter behind" its major competitors in reporting declining gains on loan sales. Gain-on-sale margins have been under pressure as long-term rates have risen. Overall mortgage lending volume has also slowed considerably, according to the Mortgage Bankers Association. Wells Fargo's shares were down slightly to close at $41.89. With continued uncertainty over the strength of the economic recovery, the direction of long-term interest rates and over the continually changing regulatory environment investors can expect bank executives in their conference call comments to continue focusing on the areas they can control, including cost-cutting.
-- Written by Philip van Doorn in Jupiter, Fla. >Contact by Email. Follow @PhilipvanDoorn
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-- Written by Philip van Doorn in Jupiter, Fla. >Contact by Email. Follow @PhilipvanDoorn
