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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bank of America Bounces Back: Financial Winner

Story updated to include closing prices.

NEW YORK (TheStreet) -- Shares of Bank of America (BAC) rose 17% Tuesday to close at $7.60 as bank stocks pared the preceding week's losses.

The Dow Jones Industrial Average was back over 11,000, as investors reacted to the Federal Reserve's open market committee's statement that short-term rates would likely remain at their historically low levels through the middle of 2013 and financial names pared losses, following Monday's market slide in the wake of S&P's downgrade of its long-term debt rating for the United States, along with additional downgrades of government-sponsored enterprises and insurers.

The KBW Bank Index (I:BKX) rose 7% to close at 39.58, with all 24 index components rising for the session.

Citigroup (C) also saw a significant recovery, with shares rising 14% to close at $31.82, following Monday's 16% decline.

Also rising 8% were Regions Financial (RF), which closed at $4.78; SunTrust (STI), closing at $19.98; U.S. Bancorp (USB), at $23.37; New York Community Bancorp (NYB), at $12.42; and Wells Fargo (WFC), which closed at $24.78, following a ratings upgrade to "Outperform" from FBR analyst Paul Miller.

Large banks seeing shares rise 8% on Tuesday included Capital One (COF), which closed at $40.82, after the Wall Street Journal reported that the company was nearing a deal to purchase HSBC's (HBC) U.S. credit card portfolio.

Shares of JPMorgan Chase (JPM) rose 7% to close at $36.40, recovering some of Monday's 9% decline.

Large banks seeing shares rise 6% on Tuesday included Cullen/Frost Bankers (CFR), which closed at $49.99; Fifth Third Bancorp (FITB), at $10.55; KeyCorp (KEY), at $6.92; and Huntington Bancshares (HBAN), which closed at $5.23.

Huntington was among three bank dividend names recommended by Oppenheimer analyst Terry McEvoy.

The private mortgage insurers also saw significant recoveries, with PMI Group (PMI) up 12% to close at 3 cents, following Monday's 16% gain. The shares tanked 75% last week on word that its main private mortgage subsidiary was undercapitalized.

MGIC (MTG) rose 24% to close at $2.35, recovering a bit from Monday's 41% decline. The shares dropped 20% last week.

Radian (RDN) was up 29% to close at $2.56, recovering from Monday's 28% decline. The shares sank 13% last week.

American International Group (AIG) -- which also operates in the private mortgage insurance space -- was up 6% to close at $23.98, following Monday's 10% decline. AIG's shares were down 13% last week.

RELATED STORIES:

RELATED STORIES:









-- Written by Philip van Doorn in Jupiter, Fla.

To contact the writer, click here: Philip van Doorn.

To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs