Print
E-mail
US Stocks Rise, Led By Banks
JPMorgan Chase, Citigroup Shares Gain
By Rita Nazareth & Lynn Thomasson, Bloomberg
New York — U.S. stocks rose for a second day as JPMorgan Chase & Co. joined Citigroup Inc. in saying it was profitable in January and February, bolstering speculation that the worst of the banking crisis may be over.
JPMorgan, the largest U.S. bank by market value, climbed 4.6 percent and Citigroup added 6.2 percent. The S&P 500 Financials Index rallied 2.4 percent to extend its advance this week to 21 percent. Hewlett-Packard Co. jumped 5.8 percent after UBS AG analysts recommended buying the shares.
The Standard & Poor’s 500 Index added 0.2 percent to 721.36, a day after rallying 6.4 percent for its steepest gain of the year. The Dow Jones Industrial Average increased 3.91 points, or 0.1 percent, to 6,930.4, with declines in Exxon Mobil Corp. and Chevron Corp. limiting the advance.
“Banks are actually making money,” said Mark Bronzo, a money manager at Security Global Investors, which oversees $23 billion in Irvington, N.Y. “These stocks have been so beaten down that it wouldn’t take much for them to do better.”
Benchmark indexes drifted between gains and losses for much of the day as a slide in energy and health-care shares snuffed out an early rally. Stocks headed higher in the final 90 minutes after JPMorgan Chief Executive Officer Jamie Dimon told CNBC that the company was profitable in January and February.
Stocks jumped yesterday after Citigroup said it’s having the best quarter since 2007, spurring speculation banks are recovering from the worst financial crisis since the Great Depression.
More than $1.2 trillion in losses and writedowns at financial firms worldwide have driven the benchmark index for U.S. equities down 20 percent this year.
Citigroup, once the world’s largest bank, climbed 9 cents to $1.54 today following a 38 percent advance yesterday. The shares are still down 77 percent this year. JPMorgan, the biggest U.S. bank by market value, rose 90 cents to $20.40.
Morgan Stanley jumped $1.67, or 8 percent, to $22.51. The fifth-biggest U.S. bank by assets was raised to “conviction buy” at Goldman Sachs, which cited its high capital position and reasonable valuation.
The S&P 500 Diversified Financials Index climbed 4.6 percent, the steepest advance among 24 industry groups.
Banks opened higher after Treasury Secretary Timothy Geithner said in an interview with PBS’s Charlie Rose that private investors will also get federal loans to buy distressed assets, in a two-pronged strategy intended to revive trading in mortgage-backed debt.
‘Move This Stuff’
“It requires making sure there’s capital available to the system, that these banks have the incentive to start to move this stuff, that there’s a mechanism available” to finance investors, Geithner said.
Marshall & Ilsley Corp., Wisconsin’s biggest bank, and Zions Bancorporation, Utah’s largest, rose more than 8 percent and 10 percent respectively after Morgan Keegan & Co Inc. analyst Robert S. Patten forecast “significant upside” for the shares because valuations appear “extremely cheap.”
Hewlett-Packard Co. climbed $1.57, or 5.8 percent, to $28.61. The stock was raised to “buy” at UBS, which said “investors with a longer-term view can benefit.”
Early gains in stocks today also came after the U.S. Congress gave final approval to a $410 billion bill that will boost domestic spending, loosen the trade embargo on Cuba and fund thousands of congressional pet projects known as earmarks.
JPMorgan, the largest U.S. bank by market value, climbed 4.6 percent and Citigroup added 6.2 percent. The S&P 500 Financials Index rallied 2.4 percent to extend its advance this week to 21 percent. Hewlett-Packard Co. jumped 5.8 percent after UBS AG analysts recommended buying the shares.
The Standard & Poor’s 500 Index added 0.2 percent to 721.36, a day after rallying 6.4 percent for its steepest gain of the year. The Dow Jones Industrial Average increased 3.91 points, or 0.1 percent, to 6,930.4, with declines in Exxon Mobil Corp. and Chevron Corp. limiting the advance.
“Banks are actually making money,” said Mark Bronzo, a money manager at Security Global Investors, which oversees $23 billion in Irvington, N.Y. “These stocks have been so beaten down that it wouldn’t take much for them to do better.”
Benchmark indexes drifted between gains and losses for much of the day as a slide in energy and health-care shares snuffed out an early rally. Stocks headed higher in the final 90 minutes after JPMorgan Chief Executive Officer Jamie Dimon told CNBC that the company was profitable in January and February.
Stocks jumped yesterday after Citigroup said it’s having the best quarter since 2007, spurring speculation banks are recovering from the worst financial crisis since the Great Depression.
More than $1.2 trillion in losses and writedowns at financial firms worldwide have driven the benchmark index for U.S. equities down 20 percent this year.
Citigroup, once the world’s largest bank, climbed 9 cents to $1.54 today following a 38 percent advance yesterday. The shares are still down 77 percent this year. JPMorgan, the biggest U.S. bank by market value, rose 90 cents to $20.40.
Morgan Stanley jumped $1.67, or 8 percent, to $22.51. The fifth-biggest U.S. bank by assets was raised to “conviction buy” at Goldman Sachs, which cited its high capital position and reasonable valuation.
The S&P 500 Diversified Financials Index climbed 4.6 percent, the steepest advance among 24 industry groups.
Banks opened higher after Treasury Secretary Timothy Geithner said in an interview with PBS’s Charlie Rose that private investors will also get federal loans to buy distressed assets, in a two-pronged strategy intended to revive trading in mortgage-backed debt.
‘Move This Stuff’
“It requires making sure there’s capital available to the system, that these banks have the incentive to start to move this stuff, that there’s a mechanism available” to finance investors, Geithner said.
Marshall & Ilsley Corp., Wisconsin’s biggest bank, and Zions Bancorporation, Utah’s largest, rose more than 8 percent and 10 percent respectively after Morgan Keegan & Co Inc. analyst Robert S. Patten forecast “significant upside” for the shares because valuations appear “extremely cheap.”
Hewlett-Packard Co. climbed $1.57, or 5.8 percent, to $28.61. The stock was raised to “buy” at UBS, which said “investors with a longer-term view can benefit.”
Early gains in stocks today also came after the U.S. Congress gave final approval to a $410 billion bill that will boost domestic spending, loosen the trade embargo on Cuba and fund thousands of congressional pet projects known as earmarks.
 |
 |
|
| Rebound Of S&P 500 Index Captivates 'Fibonacci' Bulls | Communists More Pro-Business Than The US? |
Reader Comments
The following are comments from the readers. In no way do they represent the view of thebulletin.us.
You must register with a valid email to post comments. Only your Member ID will be posted with the comments.
Registered users sign in here: |
Become a Registered User |
