NEW YORK ( TheStreet) -- Regional Bank stocks were strong on Wednesday, while the broad market was buoyed by strong sales reports from the nation's three largest auto manufacturers.
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Investors cheered after General Motors (GM) said its car sales for August were up 15% from a year earlier, while Ford (F) and Chrysler both reported year-over-year sales increases of 12%.
The consensus among analysts polled by Thomson Reuters was for U.S. car sales for August to increase by 12% from a year earlier. Shares of GM rose 5% to close at $35.85, while Ford was up 3.5% to close at $16.91.The KBW Bank Index (I:BKX) rose 0.7% to close at 62.94, with all but two of the 24 index components showing gains for the session. Large regional banks with shares rising 1.5% or more included Commerce Bancorp (CBSH) of Kansas City, Mo., which closed at $43.01; Huntington Bancshares (HBAN) of Columbus, Ohio, closing at $8.39; and Regions Financial (RF) of Birmingham, Ala., which closed at $9.49. Investors shrugged off the latest Department of Justice leak concerning JPMorgan Chase (JPM), sending the company's shares up nearly 1.5% to close at $51.87. Reuters reported that in addition to a previously leaked criminal investigation of the bank's energy trading activities, the Justice Department is investigating three JPMorgan employees based in Houston, for possible obstruction of justice. According to the report, the employees may have withheld information from regulators. Please see TheStreet's review of JPMorgan's immediate regulatory risks and the long-term opportunity for investors, which is part of our look back on the fifth anniversary of the height of the U.S. credit crisis, including the bankruptcy of Lehman Brothers , and the government takeover of Fannie Mae (FNMA) and Freddie Mac (FMCC). The KBW Bank Index has returned 23% this year, following a 30% return during 2012, beating the performance of the S&P 500, which has returned 16% this year, following a 13% return during 2012. With the banking industry having made such a strong recovery this year, investors wondering what's in store for large banks are facing a wide array of opinions among analysts. Based on available data for the first two months of the third quarter shows, Deutsche Bank analyst Matt O'Connor in his firm's "bank cheat sheets" late on Tuesday wrote "Revenues seem to be tracking weaker than previously expected in most categories such as loans, securities, mortgage production and capital markets (although a strong September is still possible)."
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