Updated from 1:12 p.m. ET with later market action.
NEW YORK (TheStreet) -- JPMorgan Chase (JPM) and Comerica (CMA) of Dallas were the winners among large-cap bank stocks Wednesday afternoon, as investors looked forward to the expected announcement of annual stress tests results by the Federal Reserve after the market close.
JPMorgan's stock was up 3.5% to $60.33, while Comerica was up 3.8% to $52.42.
The Fed's annual stress tests have become something of an annual catalyst for bank stocks, since most of the banks subject to the tests announce increases in dividends and plans to buy back shares, after the process is completed. But today's announcement only represents the first part of the process.
The first part, known as the Dodd-Frank stress tests, measures large banks' ability to remain well capitalized through a "severely adverse" economic scenario. This year's scenario assumes an increase in the U.S. unemployment of four percentage points, with the unemployment rate peaking at 11.25% in mid-2015. The scenario also includes a decline in real U.S. GDP of nearly 4.75% through the end of 2014, a 50% decline in equity prices and a 25% decline in home prices.
The severely adverse scenario also has international components, including recessions Europe and Japan, and slowing growth in Asia. For the U.S.-owned holding companies being tested, this part of the scenario is most important for Citigroup, which derives the majority of its revenue and earnings from outside North America.