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Will Regional Banks Finally Begin to Shine?

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 me and many wonderful speakers at the Money Show in Orlando, beginning October 30th running thru November 1st; spend Halloween with us!

“I grew my money tree and so can you!” – Mish Schneider

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Follow Mish on Twitter @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.

Mish in the Media

Looking for Inflation in all the Wrong Places. Against All Odds Research 10-21-22

Mish discusses why the U.S. dollar might be one of the most important lead indicators in this appearance on Benzinga.

Given mixed data, fear and strong earnings, the charts are the best indicators for the future of the economy, as Mish Schneider explains in this Yahoo! Finance appearance.

See Mish explain why Bond traders buy bad company stocks on Business First AM.

Read Mish’s latest article for CMC Markets, titled “Are Long-Term Treasuries Oversold?”.

Has the market bottomed? Where should passive investors go to be safe? Mish digs into these questions and more on Coast to Coast with Neil Cavuto.

Mish and Scott discuss a possible soft landing but with loads of headwinds to watch for on RFD-TV’s Cow Guy Close.

With BNN Bloomberg, Mish discusses the markets as U.S. banks reported earnings and why it’s important to watch long term bonds and the stability investing in the sugar trade.

The 6-7 year business cycle in the “inside” sectors of the U.S economy is facing a huge test, as Mish discusses on NASDAQ Talks.

Watch some select clips from Mish at ChartCon 2022!

Mish and Nicole talk risk, inflation, long bonds, dollar and where you can park some money on TD Ameritrade.

ETF Summary

S&P 500 (SPY): 375 support and resistance 380Russell 2000 (IWM): 170 support and 177 resistanceDow Jones (DIA): 310 support; 317 is resistanceNasdaq (QQQ): 275 support; 280 resistanceRegional banks (KRE): 59 support and 63 resistanceSemiconductors (SMH): Support at 181 and resistance at 190Transportation (IYT): 205 support and 210 resistanceBiotechnology (IBB): 119 support and 124 resistance Retail (XRT): still holding long-term support at 55 and resistance at 62

Mish Schneider

Director of Trading Research and Education

Wade Dawson

Portfolio Manager


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