(Financial winners and losers story updated for prices of stocks at the market close, including those of Goldman Sachs)

NEW YORK ( TheStreet) -- Financial stocks were beneficiaries of the broad equity markets rally early on Tuesday, but as the markets gave back gains, so did some of the big U.S. financial stocks. Major analyst action in the financial sector on Tuesday proved less important that the general give and take in trading sentiment.

JPMorgan Chase ( JPM) and Bank of America ( BAC) were the only major U.S. financial stocks to end Tuesday with gains above 1%.

Bank of America was up 1.6%, or a gain of 22 cents to $14.06, while JPMorgan gained1.4%, or 50 cents to a closing price of $36.33.

It was a JPMorgan analyst that made the big financial stock call of the day, upgrading shares of Goldman Sachs to a buy while downgrading shares of Deutsche bank to sell. JP Morgan analyst Kian Abouhossein made the bank calls based on Goldman Sachs' perceived risk-management edge, arguing that Goldman's approach to risk rating of its assets is much stricter than the approach used by European banks.

Yet it was the European banks that rallied more broadly than the U.S. financial stocks on Tuesday.

Recent Wall Street analyst calls on Goldman have tended to the negative, with Barclays last month speculating that Goldman Sachs might disappoint with its second quarter earnings.
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Goldman Sachs - Looking For a Buy

The JPMorgan analysts said that Goldman Sachs could be a benchmark for its peer banks, but the JPMorgan call didn't have an immediate impact on the bank shares that could be distinguished from the broader trading in financials.

In fact, Deutsche Bank shares ended Tuesday up to a greater extent than Goldman Sachs shares, with a gain of 1.5%.

Morgan Stanley ( MS) was also cited in the JPMorgan analyst report as an example of a U.S. firm with a more conservative approach to risk management. Morgan Stanley ended trading on Tuesday up less than 1%, in range of peer U.S. financial stocks.

Citigroup ( C) shares were flat on a day, at $3.79.

Regardless of the JPMorgan analyst view of bank risk management, it was the overseas banks that were gaining the most on Monday. UBS ( UBS) and Credit Suisse ( CS) ended Tuesday with gains above 3%.

Spanish banks had among the biggest gains on Tuesday, with Banco Santander ( STD) up more than 5%, leading the rally of bank stocks from debt-burdened European nations.

Irish and Greek bank stocks were also rallying to a greater extent than U.S. counterparts. The National Bank of Greece ( NBG) matched Santander's 5% gain on Tuesday. The typically volatile shares of Allied Irish Banks ( AIB) were up 4% on the day.

-- Written by Eric Rosenbaum from New York.

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