Regional banks stocks rally thanks to Jay Powell (and maybe Trump)

Yahoo Finance07-18

Regional bank stocks are rallying. The reason: Fed chair Jay Powell. And maybe Donald Trump, too. The boss of the central bank made it clear over the last week that the Fed is inching closer to ...

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And maybe Donald Trump, too.\nThe boss of the central bank made it clear over the last week that the Fed is inching closer to ...</p>\n\n<a href=\"https://finance.yahoo.com/news/regional-banks-stocks-rally-thanks-to-jay-powell-and-maybe-trump-210401989.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Regional banks stocks rally thanks to Jay Powell (and maybe Trump)</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nRegional banks stocks rally thanks to Jay Powell (and maybe Trump)\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-18 05:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/regional-banks-stocks-rally-thanks-to-jay-powell-and-maybe-trump-210401989.html><strong>Yahoo Finance</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Regional bank stocks are rallying.\nThe reason: Fed chair Jay Powell. And maybe Donald Trump, too.\nThe boss of the central bank made it clear over the last week that the Fed is inching closer to ...</p>\n\n<a href=\"https://finance.yahoo.com/news/regional-banks-stocks-rally-thanks-to-jay-powell-and-maybe-trump-210401989.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00BWXC8680.SGD","symbol_name":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","start_time":0,"source_url":"https://finance.yahoo.com/news/regional-banks-stocks-rally-thanks-to-jay-powell-and-maybe-trump-210401989.html","article_id":"2452603190","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/HZcrkCGWxncMw2QbcNPStQ--~B/aD0zNDU2O3c9NTE4NDthcHBpZD15dGFjaHlvbg--/https://s.yimg.com/os/creatr-uploaded-images/2024-07/65f5c0e0-447d-11ef-be3d-99930c0a8c18"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2452603190","pubTimestamp":1721250241,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The reason: Fed chair Jay Powell. And maybe Donald Trump, too.The boss of the central bank made it clear over the last week that the Fed is inching closer to cutting interest rates. Powell’s colleagues dropped some of the same hints Wednesday, with one Fed governor giving a speech titled \"Getting Closer.\". An easing of monetary policy after two years of tightening would come as a great relief for mid-sized banks across the US that have been struggling with the impact of high rates on their profits and their borrowers.Such optimism helped boost an index tracking regional banks  by 17% over the last seven trading days. It is now up more than 8% for the year.\"A lot of this, we've been saying for a while, 'it's better than you understand,'\" Chris Marinac, a regional bank analyst with Janney Montgomery Scott, told Yahoo Finance.Regional-bank investors also appear encouraged by Trump’s 2024 presidential campaign, which got a boost after a calamitous debate performance from President Joe Bide","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","BK4581":"高盛持仓","BK4504":"桥水持仓","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","LU1032466523.USD":"高盛全球多资产收益组合Acc","CFG":"Citizens Financial Group","LU0661504455.SGD":"Blackrock Global Equity Income A5 SGD-H","LU":"陆金所","LU1244550577.SGD":"FTIF - Franklin Global Multi-Asset Income A (Mdis) SGD-H1","LU0976567544.SGD":"FTIF - Templeton Global Income A Mdis SGD-H1","LU0211326839.USD":"TEMPLETON GLOBAL INCOME \"A\" (USD) INC","LU1244550494.USD":"FRANKLIN GLOBAL MULTI-ASSET INCOME \"A\" (USDHEDGED) ACC","KRE":"区域银行指数ETF-SPDR KBW","LU1496350502.SGD":"FRANKLIN DIVERSIFIED DYNAMIC \"A\" (SGDHDG) ACC","PNC":"PNC金融","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","IE00BLSP4452.SGD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis SGD-H Plus","BK4534":"瑞士信贷持仓","LU0238689110.USD":"贝莱德环球动力股票基金","BK4533":"AQR资本管理(全球第二大对冲基金)","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","LU1119994496.HKD":"FIDELITY WORLD \"A\" (HKD) ACC","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","JPM":"摩根大通","BK4211":"区域性银行","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","LU1162221912.USD":"FRANKLIN INCOME \"A\" (USD) ACC","LU0949170772.SGD":"Blackrock Global Equity Income A6 SGD-H","LU0738911758.USD":"Blackrock Global Equity Income A6 USD","BK4588":"碎股","LU1084165304.USD":"FIDELITY WORLD \"A\" (USD) ACC","LU0234572021.USD":"高盛美国核心股票组合Acc","LU2237438978.USD":"Amundi Funds US Pioneer A2 (C) USD","LU1670627923.USD":"M&G (LUX) NORTH AMERICAN DIVIDEND \"A\" (USD) ACC","USB":"美国合众银行","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD"},"translate_title":"得益于杰伊·鲍威尔（也许还有特朗普），地区银行股上涨","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"USB":1,"PNC":1,"US10Y.BOND":1,"US12M.BOND":1,"US2Y.BOND":1,"US30Y.BOND":1,"US3Y.BOND":1,"KRE":1,"US5Y.BOND":1,"US7Y.BOND":1,"US6M.BOND":1,"CFG":1,"JPM":0.9,"US912797HE00.BOND":0.6,"US912797GW17.BOND":0.6,"US912797GL51.BOND":0.6,"US912797GK78.BOND":0.6,"US912797GB79.BOND":0.6,"LU":0.6},"content_text":"Regional bank stocks are rallying.\nThe reason: Fed chair Jay Powell. And maybe Donald Trump, too.\nThe boss of the central bank made it clear over the last week that the Fed is inching closer to cutting interest rates. Powell’s colleagues dropped some of the same hints Wednesday, with one Fed governor giving a speech titled \"Getting Closer.\"\nAn easing of monetary policy after two years of tightening would come as a great relief for mid-sized banks across the US that have been struggling with the impact of high rates on their profits and their borrowers.\nSuch optimism helped boost an index tracking regional banks (KRE) by 17% over the last seven trading days. It is now up more than 8% for the year.\n\"A lot of this, we've been saying for a while, 'it's better than you understand,'\" Chris Marinac, a regional bank analyst with Janney Montgomery Scott, told Yahoo Finance.\n\"Now it feels like people have decided, ‘oh, it's better than we understand. We should own some of these stocks,\" he added.\nRegional-bank investors also appear encouraged by Trump’s 2024 presidential campaign, which got a boost after a calamitous debate performance from President Joe Biden seemed to increase the odds of a second Trump term.\nThey found more reasons to cheer this week when Trump picked Sen. JD Vance as his vice presidential nominee, adding a voice to the GOP ticket who has shown some sympathy for the plight of mid-sized lenders.\n\n\n\n  Sen. J.D. Vance. (AP Photo/Jeff Dean, File)\n \n\n  ASSOCIATED PRESS\n \n\nVance, for example, has questioned a regulatory proposal that would require large regional banks to hold greater buffers against future losses.\nHe also raised concerns last year about a decision by regulators to sell the operations of the failed First Republic bank to JPMorgan Chase (JPM) instead of a smaller regional lender — a view also shared by Democratic Sen. Elizabeth Warren.\nRegional banks are certainly more stable than they were in the spring of 2023, when the seizure of three sizable lenders triggered widespread panic about the stability of mid-sized financial institutions.\nIf the Fed begins lowering rates, regional banks will immediately see more relief as they lower rates they pay to depositors, Alexander Yokum, a regional bank analyst with CFRA, told Yahoo Finance.\nLower rates would also be \"good for the commercial real estate specifically, office, and then also the securities portfolios,\" Yokum added.\n\n\n\n  Federal Reserve Chair Jerome Powell. (AP Photo/Manuel Balce Ceneta)\n \n\n  ASSOCIATED PRESS\n \n\nBut it’s clear that at the moment these banks still face plenty of challenges, despite the recent bout of optimism.\nBetween Tuesday and Wednesday, large regional banks PNC (PNC), US Bancorp (USB) and Citizens Financial (CFG) posted second-quarter results showing their net interest income fell from the year ago period.\nNet interest income is a key measure of profitability showing the difference between what banks make from their loans and pay out in their deposits. Regional banks rely more heavily on this income than the industry giants.\nYet the stock prices of those three banks still have surged 9.3%, 11% and 11.6%, respectively, over the last five days.\nExecutives from these banks offered encouragement to analysts about the outlook for second half of the year and 2025.\n“We feel good about our positioning for rate cuts,\" US Bancorp CFO John Stern told analysts Wednesday.\nPNC CEO Bill Demchak told analysts Tuesday that \"we are on a growth trajectory towards expected record net interest income in 2025.\"\n\n\n\n  William Demchak, CEO of PNC Financial Services Group. (Tom Williams/CQ-Roll Call, Inc via Getty Images)\n \n\n  Tom Williams via Getty Images\n \n\nCitizens CEO Bruce Van Saun said \"we're kind of prepared for a slog here on office\" after reporting that profits fell 18% from a year earlier and the bank wrote off more loans tied to commercial offices.\nBut “if the Fed starts to move rates down, that could also start to move things in the other direction,” he added.\nMarinac warned that the stocks of regional banks could still quickly see a “meaningful pullback” as has happened several times in the past year.\n\"I do think folks are jumping the election trade very early, but it also is because the stocks were ignored and so cheap,” Marinac said. \n\"The market's so short term oriented that it may darn well love banks today and hate them by Friday.\"\nDavid Hollerith is a senior reporter for Yahoo Finance covering banking, crypto, and other areas in finance.\nClick here for in-depth analysis of the latest stock market news and events moving stock prices.\nRead the latest financial and business news from Yahoo Finance","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.0","shortVersion":"4.29.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2452603190"}