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.