PNC Earnings and Deposit Mix Concerns Amid M&A Activity
"Yeah, let's take a look at PNC. That did not do so well today. So, ticker PNC, those shares down more nearly 4% at 3.9% at the close and they did get results today. Third quarter net interest margin missing estimates. That's because they did add more expensive commercial deposits. Though the good news is that loan loss provisions were less than expected and that is consistent with the line that we've heard from Wall Street bank saying the consumer is totally fine."
PNC's (PNC) shares fell nearly 4% following Q3 results that missed net interest margin estimates due to a shift towards more expensive commercial deposits, though offset slightly by lower-than-expected loan loss provisions. The commentary also touches upon its ongoing M&A activity, which adds another layer of complexity to its near-term outlook.
Defensive Positioning: Consider PNC Financial Services
"Another thought for the more cautious. Look at specific sectors that are less interest rate sensitive, perhaps consumer staples, or even a strong regional bank like PNC Financial Services."
Advisory to explore defensive positions by targeting sectors less affected by interest rate hikes, with PNC Financial Services highlighted as a potential candidate.
Technical Breakout in Regional Bank Stocks (PNC) as Rate-Cut Catalyst
"And when you emerge from an inverse head and shoulders, you should be into a new leg of a bull market. Look at PNC4: the neckline breakout was around 180, with a retest at the 200-day moving average and an RSI reading about 72. This textbook pattern, coupled with the expectation that rate cuts will spur refinancing activity, makes it a compelling short-term bullish play."
The hosts detail a clear technical trade setup in regional bank stocks with PNC showing a textbook inverse head and shoulders pattern. The breakout signal—with a neckline around 180 and a subsequent retest at the critical 200-day moving average, reinforced by an RSI near 72—suggests a strong bullish catalyst if interest rates are cut, which would boost refinancing volumes and benefit regional banks exposed to the community market. This presents traders with an immediate, actionable opportunity in PNC stock.