We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights: Wells Fargo, PNC Financial, Citigroup and Bank of America
Read MoreHide Full Article
For Immediate Release
Chicago, IL – March 23, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Wells Fargo (WFC - Free Report) , The PNC Financial Services Group, Inc. (PNC - Free Report) , Citigroup (C - Free Report) and Bank of America (BAC - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Banks Rejoice as Fed Hikes Rate, Raises Economic Outlook
The Federal Reserve announced the first rate hike of 2018 at the Federal Open Market Committee (FOMC) meeting Wednesday, under Chairman Jerome Powell’s debut meeting. The Fed was tempted by the strengthening economy, optimism on reaching the inflation target this year and impressive labor market gains.
The benchmark federal funds rate has been hiked to 1.50-1.75% from the 1.25-1.50% raised in December 2017. Notably, this is the sixth increase in interest rates since the financial crisis, which led the Fed to lower rates to nearly zero.
“The economic outlook has strengthened in recent months,” the policy-setting FOMC stated on Wednesday in Washington. Officials repeated the previous language that they anticipate “further gradual adjustments in the stance of monetary policy.”
Policymakers increased their expectations for economic growth and continued with their projections of total three hikes in 2018. Furthermore, they increased their projection to three hikes in 2019 from the two forecasted in the December meeting.
The central bank projects economic growth at the rate of 2.7% in 2018, up from the previous expectation of 2.5%, attributed to the encouraging U.S. consumer confidence. Further, growth rate is anticipated to be 2.4% in 2019 — moderately higher than the December forecast of 2.1%.
“The job market remains strong, the economy continues to expand, and inflation appears to be moving toward the FOMC’s 2 percent longer running goal,” Powell stated in a press conference.
Additionally, based on the updated economic projections, Fed expects inflation to be at 1.9% this year, near about its target of 2%. The unemployment rate in 2018 is predicted to fall to 3.8%, down from the prior forecast of 3.9%. Also, it is estimated to decline to 3.6% in 2019, again down from the previous projection of 3.9%.
“Job gains have been strong in recent months, and the unemployment rate has stayed low,” the FOMC said. The statement noted that household spending and business investment “have moderated” from impressive fourth-quarter readings.
With decent economic growth, balanced near-term risks to economic outlook and recent strong gains in the labor market, rate hike is an added advantage for banks. Moreover, temporary concerns over inflation are expected to be subdued.
Following the interest rate-hike announcement, most Wall Street biggies, including Wells Fargo, The PNC Financial Services Group, Inc., Citigroup and Bank of America, increased their prime lending rate to 4.75%, effective Mar 22, 2018.
Notably, PNC Financial and BofA, Zacks #3 (Hold)-ranked players, highlight their optimism on the banks’ bright future prospects, with shares rising 10.1% and 8%, respectively, year to date. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
However, shares of Wells Fargo and Citigroup have declined 9.7% and 1.5%, respectively, during the same time frame.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights: Wells Fargo, PNC Financial, Citigroup and Bank of America
For Immediate Release
Chicago, IL – March 23, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Wells Fargo (WFC - Free Report) , The PNC Financial Services Group, Inc. (PNC - Free Report) , Citigroup (C - Free Report) and Bank of America (BAC - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Banks Rejoice as Fed Hikes Rate, Raises Economic Outlook
The Federal Reserve announced the first rate hike of 2018 at the Federal Open Market Committee (FOMC) meeting Wednesday, under Chairman Jerome Powell’s debut meeting. The Fed was tempted by the strengthening economy, optimism on reaching the inflation target this year and impressive labor market gains.
The benchmark federal funds rate has been hiked to 1.50-1.75% from the 1.25-1.50% raised in December 2017. Notably, this is the sixth increase in interest rates since the financial crisis, which led the Fed to lower rates to nearly zero.
“The economic outlook has strengthened in recent months,” the policy-setting FOMC stated on Wednesday in Washington. Officials repeated the previous language that they anticipate “further gradual adjustments in the stance of monetary policy.”
Policymakers increased their expectations for economic growth and continued with their projections of total three hikes in 2018. Furthermore, they increased their projection to three hikes in 2019 from the two forecasted in the December meeting.
The central bank projects economic growth at the rate of 2.7% in 2018, up from the previous expectation of 2.5%, attributed to the encouraging U.S. consumer confidence. Further, growth rate is anticipated to be 2.4% in 2019 — moderately higher than the December forecast of 2.1%.
“The job market remains strong, the economy continues to expand, and inflation appears to be moving toward the FOMC’s 2 percent longer running goal,” Powell stated in a press conference.
Additionally, based on the updated economic projections, Fed expects inflation to be at 1.9% this year, near about its target of 2%. The unemployment rate in 2018 is predicted to fall to 3.8%, down from the prior forecast of 3.9%. Also, it is estimated to decline to 3.6% in 2019, again down from the previous projection of 3.9%.
“Job gains have been strong in recent months, and the unemployment rate has stayed low,” the FOMC said. The statement noted that household spending and business investment “have moderated” from impressive fourth-quarter readings.
With decent economic growth, balanced near-term risks to economic outlook and recent strong gains in the labor market, rate hike is an added advantage for banks. Moreover, temporary concerns over inflation are expected to be subdued.
Following the interest rate-hike announcement, most Wall Street biggies, including Wells Fargo, The PNC Financial Services Group, Inc., Citigroup and Bank of America, increased their prime lending rate to 4.75%, effective Mar 22, 2018.
Notably, PNC Financial and BofA, Zacks #3 (Hold)-ranked players, highlight their optimism on the banks’ bright future prospects, with shares rising 10.1% and 8%, respectively, year to date. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
However, shares of Wells Fargo and Citigroup have declined 9.7% and 1.5%, respectively, during the same time frame.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Download it free >>
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.