The broad indexes gained, as investors tried to shrug-off a disappointing report form the U.S. Commerce Department, that first-quarter real gross domestic product grew at an estimated annualized pace of 2.2%, slowing from the a 3.0% pace during the fourth quarter. A revised first-quarter GDP growth rate will be announced on May 31, "based on more complete data."
The Commerce Department said that "deceleration in real GDP in the first quarter primarily reflected a deceleration in private inventory investment and a downturn in nonresidential fixed investment that were partly offset by accelerations in PCE and in exports."
The KBW Bank Index (I:BKX) rose slightly, to close at 48.84.Capital One Financial last week reported first-quarter net income available to common shareholders of $1.4 billion, or $2.74 a share, which included a bargain purchase gain of $594 million from the acquisition of ING Direct (USA), as well as "a $160 million benefit related to the company's sale of Visa stock and subsequent reserve adjustments and the absence of approximately $150 million of unique contra-revenue items recorded in the fourth quarter." Guggenheim Securities analyst Marty Mosby estimated that Capital One's "earnings power rebounded to $1.46" during the first quarter, "as the ING Direct acquisition was accretive, asset quality trends began to improve--further pushing
Philip van Doorn. To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.