Market Overview

'Fast Money' Traders Share Their Thoughts On Zions Bank Downgrade

Share:

On CNBC's "Fast Money Halftime Report," traders spoke about Zions Bancorporation (NASDAQ: ZION) getting a downgrade from both Wells Fargo and KBW after its earnings miss.

Stephanie Link used to own the stock, but she is out of the position because of spreads. She said the downgrade makes a lot of sense because Zions Bancorporation doesn't have net interest income guidance at all; because of that, there is no visibility. Link prefers bigger banks because they are more diversified. She bought Bank of America Corp (NYSE: BAC).

Joe Terranova agrees that bigger banks are the way to go. He added to his Citigroup Inc (NYSE: C) position. He also agrees with the downgrade of Zions Bancorporation. The lack of visibility on the margins is very discouraging, but it's all about the sensitivity of the assets to rates, said Terranova. Among the regional banks, he is watching Regions Financial Corp (NYSE: RF).

Zions stock closed down 5.3% at $42.83 per share.

Posted-In: CNBC Fast Money Halftime Report Joe Terranova Stephanie LinkShort Ideas Media Trading Ideas

 

Related Articles (BAC + C)

View Comments and Join the Discussion!

Cannabis ETF Grows Again As Tim Seymour's Fund Enters The Fray

U.S. Rail Headcount Falls In June