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Avon reports wider-than-expected loss
PepsiCo profit up 31% to top estimates
SNB chairman won’t rule out further rate cuts
Sweden cuts interest rate further below zero
European stocks knocked to lowest since 2013
FTSE 100 hits lowest level since 2012
SocGen profit up on Amundi stake sale
Dollar at lowest vs. yen since late 2014
Shell cancels $14.4 billion bridge credit facility
Hong Kong stocks dive as selloff kicks in
U.S. government runs $55 bln budget surplus

The greatest bull market of all time probably isn’t what you think it is
Greatest bull market ever likely isn’t what you think

Howard Gold: The 5 worst investment calls of this century
The 5 worst investment calls of this century

Chuck Jaffe: It’s time for these trendy mutual funds and ETFs to put up or shut up
Time for trendy ETFs, funds to put up or shut up

Rio Tinto swings to loss, drops dividend policy
Total narrows loss on fewer write-downs
Glencore copper, zinc output falls on cutbacks


Twitter proves Wall Street critics were right
Twitter adds new timeline feature

FBI closes in on Oregon holdouts


North Korea reportedly executes top general

India to pick up China’s slack in oil demand

BP CEO calls for cuts to carbon emissions
If you’re bullish on oil, these stocks are buys

Which of Europe’s Piigs might fly?
Which of Europe’s Piigs might fly?


The 10 toughest investment decisions

Bass issues warning on China’s foreign cash reserves
What’s holding back the world economy?
China's FX reserves drop $99.47 bln


Yellen: Fed isn’t sure negative rates are legal
Yellen doesn’t expect to reverse Fed rate hike
Yellen gets into heated exchange at hearing
Bond market, Yellen face off on negative rates

Will falling oil prices bankrupt Saudis, Russians?
Cheap oil may make OPEC dominant again
As oil revenue drops, Gulf states ponder taxes
Will oil get so cheap, it won’t pay to extract it?

Christie, Fiorina drop out of presidential race

A break for zombie-fighting Amazon developers
Why Apple, Amazon, Starbucks are successful
Amazon up after new share buyback plan

Portland Trail Blazers guards Damian Lillard and C.J. McCollum live with ... mom
Meet the NBA stars who live with their mothers

REIT bonus targets at heart of Brixmor scandal

Private-equity firms now buying back their own shares

Has college financial aid totally backfired?

Michael Moore: Imagine life without student debt
6 ways Obama would make college affordable

Social Security in the crosshairs: replacement rates again
Stage is being set for cuts to Social Security

Is it wise to hold on to cash reserves?

/conga/frontpage.html 367693

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122.29MDow Volume:
Avg Vol: 131.80M
Unchanged
201
Decliners
3048
Advancers
3255
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
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Dow
/quotes/zigman/627449/realtime 15,915 -100 0.62%
Nasdaq
/quotes/zigman/12633936/realtime 4,284 +15 0.35%
S&P 500
/quotes/zigman/3870025/realtime 1,852 0 0.02%
GlobalDow
/quotes/zigman/629063/realtime 2,059 -21 0.99%
Gold
/quotes/zigman/33772884/delayed 1,235 +40 3.38%
Oil
/quotes/zigman/2260836/delayed 26.59 -0.86 3.13%
FTSE 100
/quotes/zigman/3173262/delayed 5,557 -116 2.04%
DAX
/quotes/zigman/2380246/delayed 8,811 -206 2.28%
CAC 40
/quotes/zigman/3173214/delayed 3,922 -139 3.42%
FTSE MIB
/quotes/zigman/1482176/delayed 15,903 -811 4.85%
IBEX 35
/quotes/zigman/2759620/delayed 7,845 -298 3.66%
Stoxx 600
/quotes/zigman/2380150/delayed 305 -10 3.13%
Asia Dow
/quotes/zigman/6959860/realtime 2,437 -17 0.68%
Nikkei 225
/quotes/zigman/5986735/delayed 15,713 -372 2.31%
Hang Seng
/quotes/zigman/2622475/delayed 18,546 -742 3.85%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 22,952 -807 3.40%
Singapore
/quotes/zigman/1709939/delayed 2,538 -44 1.70%
Euro
/quotes/zigman/16008136/realtime/sampled 1.13 +0.00 0.31%
Yen
/quotes/zigman/16008150/realtime/sampled 112.18 -1.17 1.03%
Pound
/quotes/zigman/16008140/realtime/sampled 1.44 -0.01 0.90%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 0.00 0.44%
DXY Index
/quotes/zigman/1652083/delayed 95.65 -0.17 0.18%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.84 -0.04 0.05%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.56 -0.11 6.33%
German 10y
/quotes/zigman/15866409/realtime 0.16 -0.09 34.94%
Italy 10yr
/quotes/zigman/15866497/realtime 1.74 +0.10 5.85%
Spain 10yr
/quotes/zigman/15866444/realtime 1.80 +0.08 4.44%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.25 -0.16 11.37%
Japan 10yr
/quotes/zigman/15866525/realtime 0.01 0.00 0.00%
Crude Oil
/quotes/zigman/2260836/delayed 27 -1 3.13%
Gold
/quotes/zigman/33772884/delayed 1,235 +40 3.38%
Corn
/quotes/zigman/25518691/delayed 360 0 0.07%
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S&P F
/quotes/zigman/43106711/delayed 1,816 -31 1.65%
Silver
/quotes/zigman/32655632/delayed 16 +0 2.15%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 101.00 1.46 1.47%
AAPL /quotes/zigman/68270/composite 94.27 -0.72 -0.76%
GOOG /quotes/zigman/59527964/composite 684.12 6.01 0.89%
BAC /quotes/zigman/190927/composite 11.98 -0.22 -1.80%
C /quotes/zigman/5065548/composite 37.41 -0.10 -0.27%
F /quotes/zigman/264304/composite 11.34 -0.01 -0.09%
T /quotes/zigman/398198/composite 36.43 -0.22 -0.60%
BP /quotes/zigman/247026/composite 28.04 -0.31 -1.09%
GE /quotes/zigman/227468/composite 28.30 0.02 0.07%
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Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.5%
MMA $10K+
0.2%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.96% 11.96% 11.62%
Business 13.12% 13.12% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.35% 14.12%
Airline 15.17% 15.17% 15.10%
Cash Back 15.20% 15.26% 15.27%
Reward 15.25% 15.28% 15.14%
Instant Approval 18.02% 18.21% 18.00%
Bad Credit 22.56% 22.88% 22.73%
Source:CreditCards.com

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Are Small Bank Stocks Too Pricey?

The murky outlook for the financial industry pushed safety-seeking investors toward small banks. But some analysts say their recent popularity has made them too pricey.

Wells Fargo and J.P. Morgan Chase beat expectations in their earnings reports Friday, kicking off what is expected to be a decent  earnings season for U.S. banks. Big banks do face certain headwinds, however, including weak demand for loans and an uncertain regulatory environment. As a result, many investors have been flocking to the less-volatile stocks of smaller banks — often at a steep price, analysts say. Indeed, the KBW Regional Banks index had a forward price-to earnings ratio of 15 at the end of March, compared to 11 for the KBW Bank Index, which includes giants like Bank of America and J.P. Morgan Chase. “Unfortunately, if you’re looking for value you’ll have to take on a little more risk,” says Jim Sinegal, the lead banking analyst for Morningstar.

Bigger banks face challenges that smaller banks with more basic business models are spared, analysts say. Banks with more than $10 billion in assets must work within regulations limiting how they trade capital and charge fees, says Tim Holland, a portfolio manager at Tamro Capital Partners, an investment advisory firm based in Alexandria, Va. Smaller banks, on the other hand, “have a bit more freedom and have the potential to take clients that don’t like the fees some of the larger banks are putting in place,” he says.

Despite the risks, analysts say big banks have a few things working in their favor. Weak demand for loans makes it difficult for banks of all sizes to profit from their deposits, but larger banks make more money off of those deposits by paying lower rates, says Dan Geller, executive vice president at Market Rates Insight, a financial analysis company. Local and regional banks have to be more competitive with the interest rates they offer on savings and checking accounts because they don’t have the brand recognition of the big names, says Gellar.

Risk-averse investors tend to favor stocks from smaller and regional companies because of their more stable performance, says Sinegal. While bigger banks outshined small banks so far this year, they also suffered steeper losses in 2011. The KBW bank Index is up 22% year to date, after dropping 25% in 2011. The KBW Regional Banks index is up 11% but only fell 7% last year. Both outperformed the S&P 500 index, which is up 10% so far this year.

Comments

We welcome thoughtful comments from readers. Please comply with our guidelines. Our blogs do not require the use of your real name.

Comments (2 of 2)

View all Comments »
    • If you don’t the Fed’s money, check out Bitcoin. The web is full of news about it today. Bulletproof untraceable enlrtcoeic currency not controlled by any government or central bank.By the way, try Economists View for discussion of current economics that is much more reasoned than the one you suggested. None of this is simple

    • Why, after the taxpayer bailouts, are the big banks to big to fail? Who will solve the problem; without political contribution?

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MarketWatch - Stock Market Quotes, Business News, Financial News

New York Markets Open in:

Futures: /quotes/zigman/43106711/delayed S&P 500 -1.7% /quotes/zigman/48241424/delayed DOW -1.7% /quotes/zigman/43108768/delayed NASDAQ -1.9%

need to know
Avon reports wider-than-expected loss
PepsiCo profit up 31% to top estimates
SNB chairman won’t rule out further rate cuts
Sweden cuts interest rate further below zero
European stocks knocked to lowest since 2013
FTSE 100 hits lowest level since 2012
SocGen profit up on Amundi stake sale
Dollar at lowest vs. yen since late 2014
Shell cancels $14.4 billion bridge credit facility
Hong Kong stocks dive as selloff kicks in
U.S. government runs $55 bln budget surplus

The greatest bull market of all time probably isn’t what you think it is
Greatest bull market ever likely isn’t what you think

Howard Gold: The 5 worst investment calls of this century
The 5 worst investment calls of this century

Chuck Jaffe: It’s time for these trendy mutual funds and ETFs to put up or shut up
Time for trendy ETFs, funds to put up or shut up

Rio Tinto swings to loss, drops dividend policy
Total narrows loss on fewer write-downs
Glencore copper, zinc output falls on cutbacks


Twitter proves Wall Street critics were right
Twitter adds new timeline feature

FBI closes in on Oregon holdouts


North Korea reportedly executes top general

India to pick up China’s slack in oil demand

BP CEO calls for cuts to carbon emissions
If you’re bullish on oil, these stocks are buys

Which of Europe’s Piigs might fly?
Which of Europe’s Piigs might fly?


The 10 toughest investment decisions

Bass issues warning on China’s foreign cash reserves
What’s holding back the world economy?
China's FX reserves drop $99.47 bln


Yellen: Fed isn’t sure negative rates are legal
Yellen doesn’t expect to reverse Fed rate hike
Yellen gets into heated exchange at hearing
Bond market, Yellen face off on negative rates

Will falling oil prices bankrupt Saudis, Russians?
Cheap oil may make OPEC dominant again
As oil revenue drops, Gulf states ponder taxes
Will oil get so cheap, it won’t pay to extract it?

Christie, Fiorina drop out of presidential race

A break for zombie-fighting Amazon developers
Why Apple, Amazon, Starbucks are successful
Amazon up after new share buyback plan

Portland Trail Blazers guards Damian Lillard and C.J. McCollum live with ... mom
Meet the NBA stars who live with their mothers

REIT bonus targets at heart of Brixmor scandal

Private-equity firms now buying back their own shares

Has college financial aid totally backfired?

Michael Moore: Imagine life without student debt
6 ways Obama would make college affordable

Social Security in the crosshairs: replacement rates again
Stage is being set for cuts to Social Security

Is it wise to hold on to cash reserves?

/conga/frontpage.html 367693

Markets »

122.29MDow Volume:
Avg Vol: 131.80M
Unchanged
201
Decliners
3048
Advancers
3255
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 15,915 -100 0.62%
Nasdaq
/quotes/zigman/12633936/realtime 4,284 +15 0.35%
S&P 500
/quotes/zigman/3870025/realtime 1,852 0 0.02%
GlobalDow
/quotes/zigman/629063/realtime 2,059 -20 0.99%
Gold
/quotes/zigman/33772884/delayed 1,235 +40 3.34%
Oil
/quotes/zigman/2260836/delayed 26.60 -0.85 3.10%
FTSE 100
/quotes/zigman/3173262/delayed 5,560 -113 1.99%
DAX
/quotes/zigman/2380246/delayed 8,816 -201 2.23%
CAC 40
/quotes/zigman/3173214/delayed 3,922 -139 3.42%
FTSE MIB
/quotes/zigman/1482176/delayed 15,912 -802 4.80%
IBEX 35
/quotes/zigman/2759620/delayed 7,847 -297 3.64%
Stoxx 600
/quotes/zigman/2380150/delayed 305 -10 3.13%
Asia Dow
/quotes/zigman/6959860/realtime 2,437 -17 0.68%
Nikkei 225
/quotes/zigman/5986735/delayed 15,713 -372 2.31%
Hang Seng
/quotes/zigman/2622475/delayed 18,546 -742 3.85%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 22,952 -807 3.40%
Singapore
/quotes/zigman/1709939/delayed 2,538 -44 1.70%
Euro
/quotes/zigman/16008136/realtime/sampled 1.13 +0.00 0.31%
Yen
/quotes/zigman/16008150/realtime/sampled 112.18 -1.17 1.03%
Pound
/quotes/zigman/16008140/realtime/sampled 1.44 -0.01 0.90%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 0.00 0.44%
DXY Index
/quotes/zigman/1652083/delayed 95.66 -0.16 0.17%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.84 -0.04 0.05%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.56 -0.11 6.33%
German 10y
/quotes/zigman/15866409/realtime 0.16 -0.09 34.94%
Italy 10yr
/quotes/zigman/15866497/realtime 1.74 +0.10 5.85%
Spain 10yr
/quotes/zigman/15866444/realtime 1.80 +0.08 4.44%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.25 -0.16 11.37%
Japan 10yr
/quotes/zigman/15866525/realtime 0.01 0.00 0.00%
Crude Oil
/quotes/zigman/2260836/delayed 27 -1 3.10%
Gold
/quotes/zigman/33772884/delayed 1,235 +40 3.34%
Corn
/quotes/zigman/25518691/delayed 360 0 0.07%
DJIA F
/quotes/zigman/48241424/delayed 15,604 -262 1.65%
S&P F
/quotes/zigman/43106711/delayed 1,817 -30 1.62%
Silver
/quotes/zigman/32655632/delayed 16 +0 2.15%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 101.00 1.46 1.47%
AAPL /quotes/zigman/68270/composite 94.27 -0.72 -0.76%
GOOG /quotes/zigman/59527964/composite 684.12 6.01 0.89%
BAC /quotes/zigman/190927/composite 11.98 -0.22 -1.80%
C /quotes/zigman/5065548/composite 37.41 -0.10 -0.27%
F /quotes/zigman/264304/composite 11.34 -0.01 -0.09%
T /quotes/zigman/398198/composite 36.43 -0.22 -0.60%
BP /quotes/zigman/247026/composite 28.04 -0.31 -1.09%
GE /quotes/zigman/227468/composite 28.30 0.02 0.07%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
Please log in to view your watchlist
MarketWatch Portfolio

World News from MarketWatch

Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.5%
MMA $10K+
0.2%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.96% 11.96% 11.62%
Business 13.12% 13.12% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.35% 14.12%
Airline 15.17% 15.17% 15.10%
Cash Back 15.20% 15.26% 15.27%
Reward 15.25% 15.28% 15.14%
Instant Approval 18.02% 18.21% 18.00%
Bad Credit 22.56% 22.88% 22.73%
Source:CreditCards.com

Top 3 from Barron's

Today's list of the most-viewed stories from Barron's. More »

  1. 1.
  2. 2.
  3. 3.

Visit Barrons.com

SPONSORED SECTIONS

Trending Tickers
  • /quotes/zigman/714403/composite SPY-0.09%
  • /quotes/zigman/41663/composite GLD+0.77%
  • /quotes/zigman/118681/composite TSLA-3.09%
  • /quotes/zigman/3059264/composite DUST-6.14%
  • /quotes/zigman/23556538/composite TWTR+4.03%
X
Powered by StockTwits
Link to MarketWatch's Slice.

As of July 2, 2013, the SmartMoney content you loved now lives on MarketWatch.

MarketWatch will continue to provide the same important news and information you rely on every day. And, as a MarketWatch user, you will be able to enjoy:

  • Personalized news and quote email alerts
  • Editorial e-newsletters about personal finance, mutual funds and market-specific coverage
  • Premium newsletters by our market experts
  • Games, such as Virtual Stock Exchange and Beat the Darts
  • Free WSJ.com registration