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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV