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Thursday's Bank Stocks: 'Continued nervousness over the uncertainty of what Brexit means'


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Thursday's Bank Stocks: 'Continued nervousness over the uncertainty of what Brexit means'

The market was mixed Thursday as investors continue to figureout what is happening with Brexit, industry observers said.

The SNL U.S. Bank Index rose 0.69% to 377.37, and the SNL U.S.Thrift Index increased 0.46% to 773.90. The Dow Jones Industrial Average fell 0.13%to 17,895.88 while the S&P 500 ticked down 0.09% to 2,097.90 and the Nasdaqcomposite index rose 0.36% to 4,876.81.

Among the large banks, WellsFargo & Co. inched forward 0.32% to $46.80 while increased 0.65%to $60.58 and Citigroup Inc.rose 0.56% to $41.29. Bank of AmericaCorp. jumped 1.17% to $13.01.

Large banks' stocks were trading at or below book value, whichusually only happens during a financial crisis, said Mitch Sacks, chief investmentofficer at Grand Slam Asset Management. While he does not think there is a financialcrisis, there is "continued nervousness over the uncertainty of what Brexitmeans."

Damon DelMonte, an analyst at Keefe Bruyette & Woods, saidthe markets are seeing a little bit of a bounce back after the volatility that Brexitcreated.

"The initial reaction was kind of more of a global concernand it kind of trickled down into these smaller community and regional banks,"he said. There is optimism that banks will report quality earnings in the next fewweeks and investors are "taking advantage of the sell-off," he added.

In economic news, private sector employment increased by jobs in June, according tothe ADP National Employment Report. Small businesses booked the largest increasesin June, adding 95,000 jobs. Medium businesses added 52,000 jobs and large businessesadded 25,000 jobs in the month.

The U.S. Labor Department reported that in the week ended July2, the advance figure for seasonally adjusted initial jobless claims was 254,000,down from the previous week's revised level of 270,000. The four-week moving averagewas 264,750, compared to the previous period's revised average of 267,250.

Challenger Gray & Christmas Inc. reported that U.S. employersannounced plans to shed 38,536 workers from their payrolls in June, up 28% fromthe 30,157 job cuts disclosed in May and down 14% from the 44,842 planned job cutsreported in June 2015.

Wintrust FinancialCorp. rose 0.74% to $50.07 after news that it is Elgin, Ill.-based at an aggregatepurchase price of approximately $30.3 million.

Among price leaders, Pasadena, Calif.-based increased 2.83%to $33.11 while Santa Clara, Calif.-based SVBFinancial Group ticked up 2.99% to $93.15.

Meanwhile, Philadelphia-based Republic First Bancorp Inc. fell 1.42% to $4.18.

In thrifts, Westbury, N.Y.-based New York Community Bancorp Inc. was flat at $14.67 whileLake Success, N.Y.-based Astoria FinancialCorp. inched forward 0.07% to $14.87.

Market prices and indexvalues are current as of the time of publication and are subject to change.