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Bank of America: Bank Stock Winner

NEW YORK ( TheStreet) - Bank of America (BAC - Get Report) was the top-performing bank stock in the S&P 500 as financials led a third consecutive day of index gains.

All 17 banks in the S&P 500 gained on Thursday amid comments from New York Federal Reserve president William Dudley that the central bank will only end an aggressive bond buying program when the U.S. economy shows strong evidence of growth and that a rise in short term interest rates is not an imminent matter of Fed discussion.

Hudson City Bancorp (HCBK - Get Report), Keycorp (KEY), Regions Financial (RF) and Citigroup (C - Get Report) also outperformed broader markets with gains in excess of 1.5%, while U.S. Bancorp (USB) lagged the sector rising just 0.39% to $36.08.

Stocks also benefitted from falling U.S. jobless claims and comments from Chinese banking authorities that they have the tools to quell a liquidity crisis in some short-term funding markets.

The S&P 500 was gaining 0.8% to 1,614.18. The gauge has risen 2.1% since Monday though it remains poised to decline 1% for June, making it the S&P's first monthly decline since October.

Investors bought shares as Federal Reserve governor Jerome Powell told an audience at the Bipartisan Policy Center in Washington that the economy was showing signs of finally turning-around after more than a few head fakes.

"The first reduction in purchases, when it comes, will be an acknowledgement of the economy's progress and a sign of the Committee's confidence in the path to full recovery," said Powell, a member of the Fed's all-important policy-setting panel, the Federal Open Market Committee.

Separately, New York Fed President Bill Dudley, in a speech before some recent college graduates, reiterated that the Fed's timeline for curbing its bond-buying program depended on the strength or weakness of economic data over the coming months.

Office real estate investment trusts (REITs) Vornado (VNO - Get Report), Boston Properties (BXP - Get Report) and Prologis (PLD) were among the top performers in the financial sector, on signs of a cooling to surging interest rates. Insurance companies were the worst performers in the financial sector.

Data released earlier today showed consumer spending had increased in May while pending home sales spiked as buyers rushed to take advantage of favorable financing conditions before they tighten.
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BAC $15.75 0.00%
C $51.65 0.00%
BXP $121.89 0.00%
HCBK $10.04 0.00%
VNO $95.88 0.00%


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

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