Wachovia Deal Stokes Brokers

Updated from 6:33 a.m.

Wachovia's (WB Quote) $6.8 billion buy of A.G. Edwards (AGE Quote) set off a huge rally in the regional brokerage sector Thursday as Wall Street wagered on which will be the next to be taken out.

Wachovia's cash-and-stock deal will create the second-biggest U.S. brokerage firm after Merrill Lynch (MER Quote). The plan, which gives shareholders of St. Louis-based A.G. Edwards a 16% premium to Wednesday's closing prices, set off a fierce rally in Raymond James (RJF Quote) and solid gains in other players such as Jeffries (JEF Quote) and Piper Jaffray (PJC Quote). ...