NEW YORK (TheStreet) -- While the broader market scoffed at Friday's jobs report, bank stocks rallied. The economy added 280,000 jobs in May, which was much higher than analyst estimates of 226,000 and boosted speculation that the Federal Reserve will raise interest rates sooner.
The S&P 500 closed down 3.01 points at 2,092.83, while the KBW Bank Index, which tracks 24 banking companies, closed up 5.89 points at 77.59.
Goldman Sachs is said to be nearing a settlement with the Justice Department in a probe of its sale of mortgage bonds before the financial crisis, Bloomberg reports. The bank could end up paying between $2 billion to $3 billion.
Goldman Sachs is one of many banks under investigation. Others are Barclays (BCS), Credit Suisse (CS), Deutsche Bank (DB), HSBC (HSBC), Royal Bank of Scotland (RBS), UBS (UBS) and Wells Fargo (WFC), Bloomberg reports. The Justice Department is investigating whether the banks violated federal law in the underwriting, securitizing, and selling of the securities.
Goldman Sachs closed up $1.56 to $210.43.
The report spoke generally about discount brokers, and called e-brokers "uniquely rate sensitive," which gives them high potential for earnings growth when the Fed raises interest rates.
Charles Schwab closed up 96 cents to $33.22, while E*Trade rose 56 cents to $30.67.
The Oracle of Omaha has donated the opportunity to dine with him for the past 16 years. Last year's winner bid $2,166,766, according to Bloomberg. Bidding closes tonight at 7:30pm Pacific time. The highest bid at the time of writing was $1.59 million.
Berkshire Hathaway A shares closed down $1,025.41 at $211,560. The B shares closed down 72 cents to $140.76.