Shanker's price target for AIG is $47, and he estimates the company will earn $3.35 a share this year, with earnings increasing to $4.20 a share in 2014.
A Much Better Set of Employment Numbers
Dow Jones Industrial Average
Investors cheered a better-than-expected monthly employment report from the Bureau of Labor Statistics, especially in light of the disappointing report from Automatic Data Processing on Wednesday, saying that the U.S. economy added 119,000 jobs during April. The Bureau of Labor Statistics on Friday said that U.S. nonfarm payrolls increased by 165,000 during April, following the addition of 138,000 during March. The March figure was revised upward from 88,000.
The April job-growth figure came in ahead of the consensus estimate of 145,000, among economists polled by Thomson Reuters.The national unemployment rate improved to 7.5% in April from 7.6% in March, moving to its lowest level since December 2008. The KBW Bank Index (I:BKX) was up 0.5% to close at 56.94, with all but 24 index components showing gains for the session, except for JPMorgan Chase (JPM), which was down 1% to close at $45.57. The KBW Insurance Index rose 1.4% to close at 154.83, with all but five of the 21 index components rounding out the week with gains.
-- Written by Philip van Doorn in Jupiter, Fla. >Contact by Email. Follow @PhilipvanDoorn