NEW YORK (
) -- An upbeat economic report helped lift financial stocks on Wednesday.
The Financial Select Sector Spider SPDR
, an ETF with a broad allocation of financial stocks, closed up 3.89% for the day to $14.08. The more focused KBW Bank Index
ended trading Wednesday on the positive side to $45.25, up 4.14% over the previous day's close.
Earlier Wednesday the Institute for Supply Management revealed that its much-followed manufacturing index rose to 56.3% in August, up from 55% in July. That unexpected increase caused a broader rally among stocks, with the Dow Jones Industrial Average
climbing 254.75 points, or 2.5%, to end the day at 10,269.47.
Shares of many large banks traded up for the day.
Bank of America
rallied 6.08% to $13.21. Earlier in the day a a federal judge approved the creation of a $150 million fund for shareholders as part of a settlement with the
Securities and Exchange Commission
over the bank's 2009 acquisition of Merrill Lynch.
shares were up 4.71% to $24.66, while stock in
were up 3.73%, to $3.84.
saw its shares rise by 3.80%, to $37.74.
The biggest gainer for the day was Birmingham, Alabama-based
, which rose 13.33% to $1.19. The biggest decliner for the day was
First Community Bank Corp.
, which dove 13.87% to $1.18.
Written by Christopher Westfall in New York