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Thursday's Bank Stocks: Down amid lackluster GDP report

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Thursday's Bank Stocks: Down amid lackluster GDP report

The markets, including banks and thrifts, were down Thursday,April 28, after weaker-than-expected GDP numbers, one analyst said.

The SNL U.S. Bank Index fell 1.12% to 409.65, while the SNL U.S.Thrift Index inched down 0.58% to 793.53. The Dow Jones Industrial Average fell1.17% to 17,830.76, the S&P 500 decreased 0.92% to 2,075.81, and the Nasdaqcomposite index was down 1.19% to 4,805.29.

Real GDP increased at an annual rate of 0.5% in the first quarterof 2016, according to the "advance" estimate of the U.S. Commerce Department.Quarter over quarter, real GDP increased 1.4% in the fourth quarter of 2015, 2.0%in the third quarter of 2015, 3.9% in the second quarter of 2015 and 0.6% in thefirst quarter of 2015.

"The mix of growth was also disappointing," said ChristopherLow, chief economist at FTN Financial. Business investment was "just awful,"as spending on structures has been down three quarters in a row and equipment spendinghas been down for the last two quarters, he said.

"Earnings have not been great," he said. "We'vehad six back-to-back to quarters of declining profits, according to the GDP tables,and that seems to be translating into weaker spending as well."

In other economic news, the week ended April 23 saw an increasein unemployment insurance claims, with the advance figure for seasonally adjustedinitial jobless claims hitting 257,000, according to the U.S. Labor Department.The previous week's revised level was 248,000. The four-week moving average was256,000, compared to the previous period's revised level of 260,750.This is the lowest level for this average since Dec. 8, 1973, when it was 252,250.

Among the big banks, WellsFargo & Co. fell 1.02% to $50.41, Citigroup Inc. decreased 1.16% to $46.73 and inched down 0.80%to $63.60. Bank of America Corp.was down 1.53% to $14.79.

In earnings news, Sioux Falls, S.D.-based Great Western Bancorp Inc. spiked 4.57% to $31.11 after itreported second-fiscal-quarterEPS of 55 cents, compared to 34 cents for the same quarter of fiscal year 2015.Sioux Falls, S.D.-based HF FinancialCorp., which is pending a mergerwith Great Western Bancorp, rose 3.20% to $19.97.

Lafayette, La.-based MidSouthBancorp Inc. stock fell 0.54% to $9.29. It reported an EPS of 17 cents for the first quarter, comparedto 12 cents per share earned in the year-ago quarter. American Fork, Utah-basedPeople's Utah Bancorpdecreased 0.49% to $16.38 after it reportedfirst-quarter net income of $5.2 million, or 29 cents per share, compared to $4.8million, or 31 cents per share, a year earlier.

Lafayette, La.-based IBERIABANKCorp. reportedincome available to common shareholders of $40.2 million, or 97 cents per sharefor the first quarter of 2016. The results compare to $44.4 million a quarter ago,or $1.08 per share, and $25.1 million, or 75 cents per share, a year ago. Its stockrose 3.16% to $58.81.

Among price leaders, Sioux Falls, S.D.-based jumped 7.41% to$49.73 after it reportedsecond-fiscal-quarter net income of $14.3 million, or $1.68 per share, comparedto $5.2 million, or 78 cents per share, a year ago.

Tacoma, Wash.-based ColumbiaBanking System Inc. tumbled 5.33% to $29.99.

Among thrifts, Cleveland-based TFS Financial Corp. (MHC) fell 0.50% to $18.03, while LakeSuccess, N.Y.-based Astoria FinancialCorp. decreased 1.43% to $15.14.

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