GE's gains came despite a drop in large banks such as Citigroup (C - Get Report), JPMorgan (JPM - Get Report), Wells Fargo (WFC - Get Report) and Bank of America (BAC - Get Report). GE has frequently traded in tandem with those institutions, due to the large contribution of its financial services unit to the firm's overall balance sheet
Moody's Investors Service downgraded GE yesterday, following on the heels of Standard & Poor's. Those two big ratings agencies had long been expected to cut GE's sacred AAA rating, and fears of how the market would react may have been pressuring the stock. Moody's now has a stable outlook on GE's rating.
Another concern had been that GE would trim its dividend, which it had not done since the Great Depression. That came to pass last month, when GE cut the dividend 68% to 10 cents per share.Now the worst of the bad news may be past, giving the shares some breathing room.