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 Bounces Back: Financial Winner

Story updated to include closing prices.

NEW YORK ( TheStreet) -- Shares of Bank of America (BAC - Get Report) 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 - Get Report) 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 - Get Report), which closed at $4.78; SunTrust (STI - Get Report), closing at $19.98; U.S. Bancorp (USB), at $23.37; New York Community Bancorp (NYB), at $12.42; and Wells Fargo (WFC - Get Report), 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 - Get Report), 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 - Get Report) 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.



-- 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
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 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.

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
BAC $12.95 0.00%
C $39.86 0.00%
COF $63.36 0.00%
JPM $57.75 0.00%
RF $7.80 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs