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Monday's Bank Stocks: S&P 500 hits all-time high on Friday jobs report spillover


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Monday's Bank Stocks: S&P 500 hits all-time high on Friday jobs report spillover

Investorspushed the S&P 500 to an all-time high on Monday, July 11, basking in the glowof much-improved jobs numbers and the Japanese elections.

The SNLU.S. Bank Index expanded 0.83% to 387.76 and the SNL U.S. Thrift Index grew 0.96%to 790.85. The Dow Jones Industrial Average advanced0.44% to 18,226.93, the S&P 500 increased 0.34% to 2,137.16 and the Nasdaq compositeindex expanded 0.64% to 4,988.64.

Monday'srally was an extension of Friday'smomentum from a stronger-than-expected jobs number and was boosted overnight by Prime Minister ShinzoAbe's victory in Japan'snational elections, said Frank Ingarra Jr., senior vice president and head traderat NorthCoast Asset Management LLC. Those two developments reassured investors thatthe domestic economy remains strong and slightly tamped down on global instabilityconcerns, and came after the Federal Open Market Committee minutes demonstratedmembers exercised cautionin deliberating about raising interest rates because of labor market concerns. Altogether, the news caused investors topush the S&P 500 to an all-time high.

"Ithink the jobs number is giving people hope that the economy is not as bad and thatthe Fed still won't raise rates right now, so there's kind of a little mix,"Ingarra said, adding his firm is about 90% invested but would consider moving somefunds into cash. "We're at an all-time high, which will be interesting to seehow that gets digested."

Earningskicked off in banks with a strong report from Bank of the Ozarks Inc., which rocketed up 6.61% to $39.21.The Little Rock, Ark.-based company has increasedits 2016 organic loan growth guidance to $3.5 billion from $3 billion, as disclosedduring its second-quarter earnings call July 11 and said it might be possible forthe company, which crossed $10 billion in assets at the beginning of 2016, to hit$20 billion by the end of the year.

gained 0.71%to $62.27, Wells Fargo & Co.added 0.61% to $48.08, Bank of AmericaCorp. increased 0.30% to $13.21 and Citigroup Inc. rose 0.74% to $42.29.

Conway,Ark.-based Home BancShares Inc.climbed 2.74% to $20.27, Great WesternBancorp Inc. expanded 2.46% to $32.87 and Capital One Financial Corp. improved 2.40% to $66.26.

In thethrift space, San Diego-based BofIHolding Inc. improved 2.94% to $18.22 and New York Community Bancorp Inc. ticked up 0.81% to $14.85.

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