Financial Winners & Losers: Lehman

Financial stocks rose Wednesday, on signals that the economy may be slowly improving and indications that banks and other firms are setting aside enough capital to cope with housing-related losses.

The NYSE Financial Sector Index added almost 75 points, or 1.2%, as the Dow Jones Industrial Average gained more than 50 points, or 0.9%.

A better-than-expected increase in durable-goods orders last month indicated that businesses and consumers are still purchasing large manufactured items, from aircraft and machinery to cars and refrigerators. And while a federal agency said that thrifts lost $5.4 billion in the second quarter, they also set aside a record amount to cover losses from bad loans. ...