Shares of the three largest companies by market cap in the KBE — Wells Fargo, JPMorgan Chase and Bank of America — rose more than 2 percent. The top advancers in the KRE were shares of OFG Bancorp and East West Bancorp.
"This rally is directly related to the executive orders," said Kevin Barker, a bank analyst at Piper Jaffray, noting that interest rates were down on Friday. Higher interest rates are bullish for bank stocks. However, any further upside in bank stocks depends on how much regulation can be rolled back, he said.
"Ultimately, if there is a rollback in financial regulation, there is potential for corporate tax cuts, meaning there is potential for bank stocks to move higher," Barker said.
READ MORE: http://www.cnbc.com/2017/02/03/bank-stocks-on-pace-for-best-day-since-november-as-trump-sets-sights-on-financial-deregulation.html
"This rally is directly related to the executive orders," said Kevin Barker, a bank analyst at Piper Jaffray, noting that interest rates were down on Friday. Higher interest rates are bullish for bank stocks. However, any further upside in bank stocks depends on how much regulation can be rolled back, he said.
"Ultimately, if there is a rollback in financial regulation, there is potential for corporate tax cuts, meaning there is potential for bank stocks to move higher," Barker said.
READ MORE: http://www.cnbc.com/2017/02/03/bank-stocks-on-pace-for-best-day-since-november-as-trump-sets-sights-on-financial-deregulation.html
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