trending Market Intelligence /marketintelligence/en/news-insights/trending/Oa1FwTZCv5VjsyTghQU4lg2 content esgSubNav
In This List

Friday's Bank Stocks: Inflation numbers cast doubt on December rate hike


Latin American and Caribbean Market Considerations Blog Series: Focus on LGD


Banking Essentials Newsletter: June Edition

Case Study

กรณีศึกษา A Bank Takes its Project Finance Assessments to a New Level


Financial Institutions Factor Transition Risk into Climate-Related Stress Testing

Friday's Bank Stocks: Inflation numbers cast doubt on December rate hike

Bank and thrift stocks lagged the broader markets in trading Aug. 11, as new economic readings reveal disappointing inflation numbers.

The Bureau of Labor Statistics said the core Consumer Price Index rose 0.1% in July and 1.7% year over year, which some economists saw as weak. Markets consequently decreased the odds of an additional Fed rate hike for 2017 from 40% to 35%. Observers had previously expected the Fed to raise rates in December.

The SNL U.S. Bank Index declined 0.67% to 538.87 while the SNL U.S. Thrift Index fell 0.91% to 868.26. The broader markets saw gains at market close, as the Dow Jones Industrial Average added 0.07% to 21,858.32, the S&P 500 gained 0.13% to 2,441.32 and the Nasdaq composite index increased 0.64% to 6,256.56.

The country's largest banks also saw their shares trade down. JPMorgan Chase & Co. decreased 0.84% to $91.42, Bank of America Corp. lost 1.08% to $23.86, Wells Fargo & Co. ticked down 0.02% to $51.94 and Citigroup Inc. declined 0.62% to $66.80.

A few companies had notable moves in trading Aug. 11. Worthington, Ohio-based Central Federal Corp. added 2.31% to $2.15 while Sewell, N.J.-based Parke Bancorp Inc. lost 4.49% to $18.10. Shares of Fresno, Calif.-based Central Valley Community Bancorp fell 4.07% to $19.35 after Folsom Lake Bank shareholders approved the merger of both companies late Aug. 10. The transaction had been cleared by regulators in July, and the merger is expected to close Oct. 1.

In thrifts, New York Community Bancorp Inc. decreased 0.74% to $12.22. Shares of Defiance, Ohio-based First Defiance Financial Corp. dropped 3.04% to $48.19 and shares of Brooklyn, N.Y.-based Dime Community Bancshares Inc. lost 2.57% to $18.95. Late on Aug. 10, the company announced that it had gained approval to be a Small Business Administration lender.

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