The Zacks Analyst Blog Highlights: JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and Toyota Motor

CHICAGO, Dec. 2, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the JPMorgan Chase & Co. (NYSE: JPM-Free Report), Bank of America Corporation (NYSE: BAC-Free Report), Citigroup Inc. (NYSE: C-Free Report), Wells Fargo & Company (NYSE: WFC-Free Report) and Toyota Motor Corporation (NYSE: TM-Free Report).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Friday's Analyst Blog:

Will Banks Charge a Fee for Deposits?

If the Federal Reserve has its way, Americans might soon have to pay for keeping their cash with banks. With the overall economic recovery remaining sluggish and high unemployment rate, the Fed is mulling over a policy shift that might spur growth.

The policy change, if implemented, could lead banks to charge fees from their clients for deposits.

With the Fed contemplating tapering its monthly $85 billion bond-buying program, the major U.S. banks including JPMorgan Chase & Co. (NYSE: JPM-Free Report), Bank of America Corporation (NYSE: BAC-Free Report), Citigroup Inc. (NYSE: C-Free Report) and Wells Fargo & Company (NYSE: WFC-Free Report) believe that the regulator will have to find other avenues to stimulate economic growth. This might include further lowering of interest rates for banks for keeping money with the Fed.

At present, the benchmark interest rate for the banks for keeping the excess money overnight with the Fed is 0.25%. Reportedly, the banking regulator is thinking of lowering this rate to 0.00%. Currently, banks hold nearly $2.4 trillion of excess reserves with the Fed for earning a substantial risk-free return.

Currently, banks are breaking even for keeping deposits as they are required to pay a small premium to a government insurance program. If the Fed lowers the rate to 0.00%, then banks will have to pass on this extra charge to the clients, who keep deposits with them.

Moreover, this will discourage banks from keeping additional reserves with the Fed, which is what the regulator wants. It anticipates such a move will encourage banks to purchase securities from the market or provide more loans.

Additionally, investment managers will have to find other ways to utilize this money and earn revenues. One way is to invest in high yield risky assets. However, this might again lead to a whole lot of trouble for the overall economy.

Amid the speculations, the major concern is how clients would react to such a policy change. If there is a mass withdrawal of deposits, the primary purpose of the Fed to go ahead with the policy shift would fail. Further, this will lead to the collapse of the banking system as a whole.

In order to prevent such a scenario, the Fed is walking a tightrope. The regulator might set up a separate facility where banks can deposit a portion of the cash to generate a small but positive return. This way it will perhaps serve both the purposes.

Whether the Fed finally goes ahead with the tapering and implements a 0.00% interest rate on deposits remains to be seen. The reaction of the backs and their customers is a significant factor as the customers would not want to pay for keeping their hard earned money with banks.

Toyota Production Up 16%

Toyota Motor Corporation's (NYSE: TM-Free Report) total worldwide production increased 16.1% year over year to 913,973 units in Oct 2013. While production in Japan improved 10.1% to 368,341 units, production outside Japan surged 20.5% to 545,632.

This is the second consecutive month that Toyota delivered improved production both in and outside Japan. In fact, production outside Japan reached a record high. The production figure includes the production of passenger cars, trucks and buses by Toyota as well as its subsidiaries Hino Motors, Ltd. and Daihatsu Motor Co., Ltd.

Total sales in Japan increased 9.3% to 183,765 units, driven by a 33% surge in sales of Hino and an 11.8% increase in sales of Toyota. Sales in Japan increased for the second consecutive month, although the combined market share of Toyota, Hino and Daihatsu declined 3.2 percentage points to 43.6%.

Sales of Toyota minivehicles in Japan increased 11.1% year over year to 3,225 units in October. The market share of Toyota in Japan declined 1.6 percentage points to 31.9% including minivehicles and 2.4 percentage points to 49.7% excluding minivehicles.

Meanwhile, exports increased 6.6% year over year to 172,503 units, driven by a 127.6% surge in exports of Daihatsu to 783 vehicles, while Hino exports rose 1.8% to 7,881 units. Toyota exports increased 6.6% to 163,839 vehicles in October, driven by higher exports to North America, Latin America, Asia, Oceania and Africa.

Toyota's exports increased for the second consecutive month, while the combined exports increased for the third consecutive month.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on JPM - FREE

Get the full Report on BAC - FREE

Get the full Report on C - FREE

Get the full Report on WFC - FREE

Get the full Report on TM - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

SOURCE Zacks Investment Research, Inc.



RELATED LINKS
http://www.zacks.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.