Story updated to include closing prices.
NEW YORK (
) -- 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.
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
KBW Bank Index
rose 7% to close at 39.58, with all 24 index components rising for the session.
(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
(RF - Get Report)
, which closed at $4.78;
(STI - Get Report)
, closing at $19.98;
, at $23.37;
New York Community Bancorp
, at $12.42; and
(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
(COF - Get Report)
, which closed at $40.82, after the Wall Street Journal reported that the company was nearing a deal to purchase
U.S. credit card portfolio.
(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
, which closed at $49.99;
Fifth Third Bancorp
, at $10.55;
, at $6.92; and
, 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
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.
rose 24% to close at $2.35, recovering a bit from Monday's 41% decline. The shares dropped 20% last week.
was up 29% to close at $2.56, recovering from Monday's 28% decline. The shares sank 13% last week.
American International Group
-- 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.
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Philip van Doorn
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