The president abruptly walked out of a meeting on Wednesday, saying he would not negotiate with Democrats while they continued to investigate him.Politicsread more
More voters in five key industrial states disapprove than approve of Trump's handling of trade — 56% to 41%, according to a report.Politicsread more
President Donald Trump said "I don't do cover-ups" at a surprise White House press conference where he blasted investigations into his presidency. "This whole thing was a...Politicsread more
When the Fed releases minutes of its last meeting on Wednesday afternoon, it risks sounding a bit hawkish.Market Insiderread more
China is considering cutting natural gas purchases from the U.S. in its tit-for-tat strategy on trade, according to the South China Morning Post.Marketsread more
Treasury Secretary Steven Mnuchin says he has spoken with a top Walmart executive about how it can keep prices low amid the U.S.-China spat.Marketsread more
Sidewalk Labs has faced public scrutiny over its plans to build a smart city on Toronto's waterfront, adding obstacles for the project.Technologyread more
Escalating trade tensions have hit emerging markets hard this month. With the trade war still a looming fear for markets, Miller Tabak equity strategist Matt Maley is making a...Trading Nationread more
A put credit spread is a good, risk-conscious way to trade the volatile semiconductor cohort, says TradingAnalysis.com founder Todd Gordon.Trading Nationread more
Investors are writing off Lowe's new CEO Marvin Ellison, "but he's been there for five minutes," says CNBC's Jim Cramer.Investingread more
You know San Francisco is too expensive when even the tech workers would prefer to settle down somewhere else. Here are 5 cities they'd prefer to be in, according to a survey...Personal Financeread more
The pace of commercial and industrial loan growth has slowed to its weakest pace in nearly six years, according to Federal Reserve data, adding to worries about economic growth and whether the rally in bank stocks since the election is justified.
Commercial and industrial loan growth rose at its weakest pace since July 2011, at $58.1 billion
Source: Yardeni Research, Federal Reserve Board
"There's a lot of nervousness about the divergence between the strength of soft data following the election and hard data, and one of the weakest examples of that is loans," Ed Yardeni, president and chief investment strategist at Yardeni Research, told CNBC. He cited the data in his morning research note Thursday.
"It's disconcerting," said Yardeni, who is also an economist.
Reports on sentiment, or soft data, have been encouraging, while so-called hard data such as retail sales have painted a less optimistic picture of the U.S. economy. The latest CNBC/Moody's survey estimates the U.S. grew less than 1 percent in the first quarter.
Now loans are showing more reason for real concern about the economy, and an industry dependent on that growth — banking.
Major bank reports on loan growth confirmed the sluggish pace in the last week. JPMorgan Chase said its commercial and industrial loans grew 8 percent in the first quarter from the same quarter last year, unchanged from the fourth quarter of 2016.
Bank of America reported a 0.57 percent year-over-year increase in total loans and leases in the first quarter, down 0.05 percent from the fourth quarter of 2016. Citi said in the first quarter that total loans rose 2 percent year on year, and 1 percent from the fourth quarter of 2016.
That said, Yardeni noted that the recent drop in loan growth could be due to companies paying down debt after a rush to borrow and lock in
Bank stocks themselves led the postelection market rally but have stalled this year with the drop in yields. The financial sector traded lower year to date on Thursday.
"The whole premise of a rally for banks has got some downside risk in loan demand," Yardeni said.