On Thursday, June 30, bank and thrift stocks rose to finish off the first half of 2016.
The SNL U.S. Bank Index rose 1.53% to 385.62, and the SNL U.S. Thrift Index went up 1.57% to 780.92. The broader markets finished higher, as well. The Dow Jones Industrial Average gained 1.33% to 17,929.99, the S&P 500 increased 1.36% to 2,098.86 and the Nasdaq composite index rose 1.33% to 4,842.67.
Looking forward at the bank group’s performance in the second half of 2016, Lee Kyriacou, director of research at Novantas, said that profitability and growth should rise modestly as the companies wait for higher interest rates. Despite the recent macroeconomic turmoil from the Brexit vote, he said that bank stock performance is more a question of revenue growth than capital or uncertainty.
Investors are probably taking a “wait and see” approach to the financial sector until concerns about the U.S. economy subside, Kyriacou added.
In economic news, the advance figure for seasonally adjusted initial jobless claims was 268,000 for the week ended June 25, according to the U.S. Labor Department. That is an increase of 10,000 from the prior week’s revised level.
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