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Friday's Bank Stocks: Markets barely move as US GDP gets modest revision

Bank stocks and the broader markets moved little in trading Friday, May 26, as the Bureau of Economic Analysis revised the U.S. GDP number from the first quarter of 2017.

The U.S. economy was originally reported to have grown only 0.7% for the quarter, but a second estimate released in the morning revised that number to 1.2%. Economists had originally expected growth of 1%. The report said the GDP growth was pushed along by increasing investment and exports, offset by declining private inventory investment and government spending.

The slightly upward revision may bolster the case for rate normalization by the Federal Reserve, which forecast three rate hikes for 2017. Minutes released from the May Federal Open Market Committee meeting show that policymakers were seeing a slowing pace of economic activity, ultimately factoring into the decision not to raise rates.

The major indexes ended the day, also heading into a holiday weekend, relatively flat. The Dow Jones Industrial Average ticked down 0.01% to 21,080.28, the S&P 500 inched up 0.03% to 2,415.82 and the Nasdaq composite index added 0.08% to 6,210.19.

Bank stocks ended the day slightly lower than the broader markets, as the SNL U.S. Bank Index declined 0.26% to 524.34. At the big four banks, Wells Fargo & Co. had the largest move, decreasing 0.70% to $52.41. Citigroup Inc. added 0.19% to $62.07, JPMorgan Chase & Co. inched up 0.01% to $85.36 and Bank of America Corp. ticked down 0.04% to $23.24.

Shares of two New Jersey banks made some comparatively substantial gains on an otherwise quiet day, as Mount Laurel-based Marlin Business Services Corp. added 3.26% to $25.35 and Bedminster-based Peapack-Gladstone Financial Corp. gained 3.04% to $30.87. Peapack-Gladstone announced early on May 26 that it has agreed to acquire Gladstone, N.J.-based asset manager Murphy Capital Management Inc. for an undisclosed sum.

Meanwhile, shares of Honolulu-based First Hawaiian Inc. decreased slightly by 1.92% to $28.10, while San Antonio-based Cullen/Frost Bankers Inc. lost 1.04% to $92.38.

Thrifts reached the closing bell largely unchanged, ticking down only 0.02% to 881.28. New York Community Bancorp Inc. gained 0.39% to $13.01. Troy, Mich.-based Flagstar Bancorp Inc. increased 1.45% to $29.31, while Norwood, Mass.-based Blue Hills Bancorp Inc. declined 2.16% to $18.10.

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