Will Regional Banks Finally Begin to Shine?
Will Regional Banks Finally Begin to Shine?
Written by Michele ‘Mish’ Schneider and Wade Dawson
This week is a big week for earnings.
Furthermore, PCE and GDP prints will also be closely watched.
This week will be important in determining the tone leading to the Fed meeting next week and the midterm elections on November 8.
As many investors will be watching tech earnings, many other bellwether companies are reporting and pivotal industries to watch, such as regional banks (KRE).
One of the regional banks on our watchlist is Zion (ZION), one of the leading financial services providers in the Western United States.
Zion dates to 1873, is headquartered in Salt Lake City, and has more than 400 branches.
Zion’s earnings indicate more about the regional economy’s health and provide a glimpse into what to expect from other regional bank stocks this quarter.
So, how did Zion do? Zion was up 4.2% on Monday, and here’s a more detailed look at what Q3 looked like for Zion, which reported after hours on Monday, and what Q4 might look like for regional banking.
Zion is primarily in 11 western states and offers a full range of banking services, including commercial and retail banking, wealth management, and private client banking.
The effects of the lending environment, rising interest rates, inflation, and macroeconomic issues affected the fee income and operational expenditures in a positive way.
The effects of the lending environment, rising interest rates, inflation, and macroeconomic issues positively affected the fee income and operational expenditures.
Zion’s share price has been hit hard recently. However, with rates expected to continue to rise, Zion should see an improvement in lending and operational margins.
For Q3, ZION demonstrated the positive impact of solid loan growth and moderately higher interest rates, as their net interest margin strengthened to 3.24%, up from 2.68% a year ago.
Technically, ZION made a reversal low that confirmed pre-earnings. Should it get follow through, expect to see 48.00 as support and 52-54 resistance to clear.
The positive earnings from Zion are a step in the right-wrong direction. The regional banking sector has suffered significantly and is putting in daily higher bottoms and struggling to regain its 50-day moving average.
Stay informed about what’s happening in the banking world as we head into the new year. Are you ready to take advantage of upcoming trading opportunities?
You can sign up for a free consultation with Rob Quinn, our Chief Strategy Consultant, by clicking here to learn more about Mish’s top-rated risk management trading service.
Mish’s Upcoming Seminars
The Money Show, October 30 – November 1
Our members get 20% off the registration price!
Join Mish and many wonderful speakers at the Money Show in Orlando beginning October 30th running thru November 1st. Spend Halloween with us! Use either link to join Mish there!
Get your copy of “Plant Your Money Tree: A Guide to Growing Your Wealth”
Grow Your Wealth Today and Plant Your Money Tree!
“I grew my money tree and so can you!”- Mish Schneider
Mish in the Media
Against All Odds Research 10-21-22Looking for Inflation in all the Wrong Places
Benzinga 10-21-22
Pre-Market Prep
Yahoo Finance 10-19-22
We Still Don’t Really Know the Future for the Economy
Business First AM 10-19-22
Why Bond Traders Buy bad Company Stocks
CMC Markets 10-19-22
Are long-term treasuries oversold?
Cow Guy Close 10-17-22
The Good, The Bad and The Ugly
Fox Business, Cavuto Coast to Coast 10-17-22
Can You Trust This Rally?
Fox Business, Cavuto Coast to Coast 10-17-22
What to Advise Folks with Retirement Accounts that are Losing Money?
NASDAQ Talks 10-14-22
Inflation Data and What Sectors Look Attractive
BNN Bloomberg 10-14-22
Will the Whole System Unravel?
Clips from ChartCon2022 October 7-8, 2022
Presented by StockCharts.com, Stock Picking Lightning Round
Bull v. Bear Chartcon 2022 October 7-8, 2022Presented by StockCharts.com; Bear vs Bulls: A Debate
TD Ameritrade 10-13-22Long-Term Investor’s List of Stocks to Buy
ETF Summary
S&P 500 (SPY) 375 support and resistance 380
Russell 2000 (IWM) 170 support and 177 resistance
Dow Jones (DIA) 310 support; 317 is resistance
Nasdaq (QQQ) 275 support; 280 resistance
Regional banks (KRE) 59 support and 63 resistance
Semiconductors (SMH) Support at 181 and resistance at 190
Transportation (IYT) 205 support and 210 resistance
Biotechnology (IBB) 119 support and 124 resistance
Retail (XRT) still holding long-term support at 55 and resistance at 62
20221025
