Regional lender New York Community Bank (NYCB) is a hot stock today. After surging by above 30% yesterday, watch for the stock to continue its rally. The company received $1 billion in capital support from an investor group led by Steven Mnuchin in the first quarter.
By the end of 2026, NYCB will report higher profitability and higher capital levels. It is targeting an average tangible common equity of 11% - 12%. The firm, which is rebranding itself as NYCB Flagstar, lost 25 cents a share in the quarter.
Watch Friday’s Jobs Report
On Tuesday, the Bureau of Labor Statistics reported compensation costs rising by 1.2% in Q1. This wage increase presents a problem for the Fed. Expect sticky inflation throughout this year. People will continue to pay more for groceries, energy, housing, and insurance.
The hot stocks in those sectors include Walmart (WMT), Costco (COST), and Exxon (XOM). In housing, watch Lennar (LEN), a home builder but avoid Zillow Group (Z). Last night, Zill said it expects total transaction volume within the residential real estate market to be flat in Q2 Y/Y.
This Friday, the non-farm payroll report will validate the Fed’s decision to keep rates at over 5%. Expect the BLs to report that jobs increased in healthcare and the government industries in April.
