This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bank of America Rises, American Banks Fall

Shares of Bank of America (BAC - Get Report) rose as much as 8.8% today after the company sold $13.5 billion in stock to shore up its capital, but ProShares Ultra Financials (UYG) investors were rewarded with a loss.

The "shorts" won again. ProShares UltraShort Financials (SKF), designed to rise at twice the pace of banking shares' decline, climbed as much as 3%. ProShares Ultra Financials, which bets on an increase in stock prices, dropped as much as 3.5%.

Bank of America, the country's largest financial institution, is commonly considered a bellwether for the U.S. banking industry. But the company's stock doesn't always move in step with ProShares Ultra Financials. Investors should be wary of using the Charlotte, North Carolina-based firm as a proxy for U.S. banking. Bank of America rose on 14 trading days in the past month, compared with 10 days for ProShares Ultra Financials. Bank of America's stock advanced almost 10% during that time, twice the rate of the ETF's.

JPMorgan Chase (JPM - Get Report) increased the same number of days as ProShares Ultra Financials, handing investors the same returns. That's because JPMorgan is the largest member of the ETF, which is based on the Dow Jones U.S. Financials Index. JPMorgan comprises 9.9% of the Dow Jones index, more than twice that of Bank of America. Even Wells Fargo (WFC - Get Report) and Goldman Sachs (GS - Get Report) carry more weight.

In New York trading today, the five largest Dow Jones U.S. Financials Index members declined, save for Bank of America. Investors are concerned some financial institutions haven't purged themselves of all their toxic securities as the government is set to write new rules that could rein in profits.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
UYG $67.85 0.00%
BAC $14.56 0.00%
GS $164.11 0.00%
JPM $63.20 0.00%
SKF $44.98 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs