JPMorgan Chase & Co. (JPM), Wells Fargo & Co (WFC): The 8 Announcements Bank Investors Must Watch This Week

Page 1 of 2

In this series, we’ll explore the data announcements and events that may impact the performance of bank stocks during the upcoming week.

This past week was a big week for economic announcements, and though there will be plenty of data released this coming week, bank investors should note that the information released this week may have a bigger effect on how your stocks perform. The announcements will largely come on Wednesday and Thursday, so be prepared for a lot of movement late in the week. Let’s take a look at what’s going to be announced, what banks may be affected the most, and what you should look out for in the coming days.

JPMorgan Chase & Co (NYSE:JPM)Wednesday

  • Bank Reserve Settlement – the Federal Reserve has target dates every two weeks on which the nation’s banks must meet their capital requirements. Since some banks may have to scrounge up capital from other banks, the Federal Fund Rate may be affected as banks are willing to pay whatever it takes to meet its threshold. A bank not meeting the Fed’s reserve requirements doesn’t mean it’s in trouble, but it can signal poor reserve management, which is not a favorable sign to investors. Based on their fourth-quarter capital ratios, Bank of America Corp (NYSE:BAC)Citigroup Inc. (NYSE:C), and JPMorgan Chase & Co. (NYSE:JPM) were the top three capitalized banks of the nation’s five largest, with 9.25% for B of A and 8.7% for C and JPM.
  • MBA Purchase Applications– a weekly look at the mortgage application activity from the Mortgage Banker’s Association. It is important for bank investors to keep an eye on mortgage activity, since loans are a primary driver of a bank’s profitability. Mortgage king Wells Fargo & Co (NYSE:WFC) produced the largest percentage of mortgage originations in the third and fourth quarters of 2012, propelling it to a $19 billion profit for the year. If mortgage activity continues to trend downward, bank will have a harder time contending with the continued pressure in net interest margins, which has mostly been offset by non-interest fees, like mortgage origination fees.
  • Federal Reserve’s Beige Book– produced two weeks before the FOMC’s monetary policy meeting, the Fed’s beige book provides evidence of the economy’s condition, which influences the Fed’s interest rate policy. Interest rate changes are one of the most influential movers of the markets, and are of particular importance to banks. The recent release of the last FOMC meeting’s minutes sent the banks into a tailspin when it was revealed that members of the committee supported ending the current QE stimulus program early.
  • ADP Employment Report — released monthly, Automatic Data Processing (NASDAQ: ADP) releases data that indicates employment and wage trends, including any wage inflation insights. The release of the ADP report starts of the rest of the week’s employment data announcements, and as employment data can have a big effect on investor confidence it’s important to every bank stock out there.
Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!