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Thursday's Bank Stocks: JPMorgan up following Zames' resignation


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Thursday's Bank Stocks: JPMorgan up following Zames' resignation

JPMorgan Chase & Co. stock added 1.24% to $84.95 on Thursday, June 8, following news that COO Matthew Zames is leaving the company.

Zames spent 13 years with the company and was viewed as a likely successor to CEO Jamie Dimon.

In an interview, Baird Equity Research analyst David George called Zames' resignation a "mild" surprise that shouldn't negatively impact the company's future.

"They've got a deep and fairly long-tenured management team," George said. "There's obviously been speculation about Dimon's successor. We don't believe Dimon is going to be retiring anytime soon."

The financial sector outperformed the broader markets for the day, with the SNL U.S. Bank Index jumping 1.76% to 528.54, and the SNL U.S. Thrift Index adding 2.07% to 897.20.

Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co., said that despite the hype, former FBI Director James Comey's testimony before a Senate committee didn't sway investors, calling it a "non-event." At the June 8 hearing, Comey explained his belief that President Trump tried to derail an FBI investigation into a former White House aide, deepening a controversy that may be slowing down congressional action on the administration's policy priorities.

The Dow Jones Industrial Average gained 0.04% to 21,182.53, the S&P 500 ticked up 0.03% to 2,433.79 and the Nasdaq composite index expanded 0.39% to 6,321.76.

Bank of America Corp. gained 1.64% to $22.97, Citigroup Inc. rose 2.15% to $63.21 and Wells Fargo & Co. added 0.90% to $52.56.

Antonelli called the day's gains a "relief rally" for banks. The U.S. House of Representatives passed the Financial CHOICE Act, capping off months of hearings and debate between lawmakers about the overhaul of financial regulations. But chances of the legislation passing the Senate remain slim.

Among other notable movers, LegacyTexas Financial Group Inc. gained 5.67% to $38.42, Home BancShares Inc. climbed 5.06% to $24.10, Pinnacle Financial Partners Inc. jumped 5.01% to $66.00, BNC Bancorp grew 5.16% to $34.65 and Umpqua Holdings Corp. rose 5.02% to $17.99.

In thrifts, Astoria Financial Corp. rose 3.97% to $19.62 and Flagstar Bancorp Inc. added 3.55% to $30.35.

In economic news, initial claims for unemployment benefits in the U.S. declined by 10,000 to a seasonally adjusted 245,000 for the week ended June 3, according to the U.S. Labor Department. The previous week's level was revised to 255,000 from 248,000.

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