What The Jobs Report Means For Banks

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Jason O'Donnell was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

Bluestone Financial Institutions Fund Chief Investment Officer Jason O'Donnell talked about Friday’s jobs report on the show.

O'Donnell thought that the jobs report, overall, was good for banks with expectation that interest rate hikes would be seen in 2015.

The Fed Funds rate would likely move higher by 50 basis points in the fourth quarter of 2015, according to O'Donnell, as a base case scenario.

The small- and mid-cap banks were “highly levered to interest rate increases,” O'Donnell said, which would mean “very good things for earnings growth” as rates increase.

SPDR KBW Regional Banking (ETF) KRE recently traded at $41.51, up 0.65 percent.

Listen to the show here:

Posted In: EconomicsExclusivesTrading IdeasInterviewBluestone Financial InstitutionsJason O'Donnell
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