Financial stocks started off in negative territory but rallied as the market gained some comfort from Wachovia Bank's(WB Quote) statement that it wouldn't need to raise more cash.
The Charlotte, N.C.-based bank reported a second-quarter loss of $8.86 billion, slashed its dividend and will be eliminating 10,750 jobs. Even if analysts exclude one-time items, it was still a huge miss for the forecasts.
Initially, the stock was trading in negative territory as expected, but then management said on the conference call that it wouldn't need to raise more capital, which led investors to think that maybe the bank was hitting bottom. That comment turned the sellers to buyers, and the stock was lately up 7.8% to $14.22.
The NYSE Financial Sector index also opened on the downside, but picked up and was advancing 46.47 to 6,394.03 ...
Recent Comments
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,337.05 | 1,095.89 | 2,183.73 | 34.23 |
Oil *
72.62
|
|
UP
51.08
|
UP
3.96
|
UP
10.74
|
UP
0.31
|
10 Yr
3.42%
SPDR Gold
110.84
|
|
+0.50%
|
+0.36%
|
+0.49%
|
+0.91%
|
Data delayed 20 minutes |
Connect with TheStreet