Bank Reserve Settlement — every two weeks, banks must meet the Federal Reserve capital requirements. If there are banks that are not properly capitalized to meet the target dates set by the Fed, 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. As the recent CCAR results showed, most of the large banks are over-capitalized. Citigroup Inc. (NYSE:C) was the best of the big four, which earned it a green light from the Fed for its 2013 capital plan.
Jobless claims — a weekly look at the new unemployment claims, the jobless report has been one of the main factors cited by analyst as to why the markets have been booming despite continued disagreement in Washington over the federal budget. With the labor market in the best condition we’ve seen in five years, it’s no wonder investors are confident.
Existing home sales — a measure of closed sales of preexisting homes, this data point gives a sense of the housing market’s condition, since it will show whether or not buyers are interested in buying any home, not just newly constructed homes. One more piece of data that will give bank investors a gauge on how much new mortgage business is available for the banks.
Federal Reserve Summary of Assets and Liabilities of U.S. Commercial Banks — a weekly summation of the nation’s banks’ accounting. The collection of data allows an investor to see which components make up the collective balance sheet, as well as the percentage changes since the last-measured period. It provides important detail on the progress made by the nation’s banks to increase revenue generating business.
So much data, so little time
As always, there is a ton of data being released next week, but don’t feel overwhelmed. Though it’s important to know what’s going on that will affect your bank stocks, you don’t need to bury your head in every report to be well informed. For next week, the biggest thing will be the results of the FOMC meeting. If you’re a B of A investor, be sure to pay attention to what happens after the committee makes its announcements — your stock is sure to react very quickly.
If you think B of A’s stock moved as much as it could when it doubled in 2012, think again. Though it still has significant challenges still ahead, this week’s results of the stress test could be the catalyst for B of A’s stock resurgence. It’s critical to have a solid understanding of this megabank before adding it to your portfolio, regardless of the stress-test results.
The article 9 Announcements Bank Investors Must Watch Next Week originally appeared on Fool.com and is written by Jessica Alling.
Fool contributor Jessica Alling has no position in any stocks mentioned, but you can contact her here. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo.
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