This Day On The Street
Continue to site
ADVERTISEMENT
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: 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.

1 of 2

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BXP $136.60 0.00%
C $53.07 0.00%
BAC $15.56 0.00%
HCBK $9.50 0.00%
VNO $106.99 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs