Goldman Sachs rose more than 2%, extending gains from Tuesday's session after the bank's key executives received a scolding from members of Congress during testimony on Capitol Hill. On Tuesday, Goldman shares rose 0.7% while the Dow Jones Industrial Average lost nearly 2%.
On Tuesday, Goldman Sachs CEO Lloyd Blankfein and trader Fabrice Tourre were among the witnesses who held their ground when questioned about conflicts in the firm's mortgage-related securities trades, saying they were merely acting as market markers and managing risk.
Lately, Goldman Sachs shares were rising 2.2% to $156.33. By comparison, the Dow and S&P 500 were up less than 0.5% Wednesday.American International Group (AIG) was another winner among financial names Wednesday, rebounding 7.2% one day after an analyst offered negative commentary on the insurer. AIG shares tumbled 16% Tuesday after Keefe Bruyette & Woods analyst Cliff Gallant cut the firm's rating on the insurer to underperform from market perform with a $6 price target. Gallant said that under the current ownership and capital structure, he sees little long-term value in the common shares, despite the strength of the underlying franchises. AIG shares were up $2.69, or 7.2%, to $40.06. Most major U.S. bank stocks were slightly higher, showing little reaction to word that a Senate vote to bring the Financial Regulation Bill to the floor for debate failed for a third time in as many days due to a lack of support from Republican members. JPMorgan Chase (JPM) was higher by 2.2% to $43.35, Citigroup (C) rose 2.1% to $4.43, Wells Fargo (WFC) was up 2% to $32.35, Morgan Stanley (MS) added 1.4% to $30.29, and Bank of America (BAC) gained 0.7% to $17.60. On the earnings front, Invesco (IVZ) reported first-quarter net income of $95 million, or 21 cents a share, rising sharply from a year-ago profit of $31 million, or 8 cents a share. Invesco shares were climbing 4.7% to $21.70. Elsewhere, SunTrust Banks rose for the first time in six sessions. SunTrust was upgraded to buy from hold at Deutsche Bank on Tuesday, although the stock closed lower Tuesday for a five-session loss of 11.5%. Lately, though, SunTrust shares were gaining 4.9% to $29.15. -- Written by Robert Holmes in Boston. Follow Robert Holmes on Twitter and become a fan of TheStreet.com on Facebook.
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