BofA leads banks up; S&P 500 index ekes out gain
NEW YORK — Bank of America led a rally in big-bank stocks in mostly quiet trading on Monday. Stock indexes ended little changed after a record-setting run last week.
News that Bank of America and MBIA, a bond-insurance company, had reached a settlement over a long-running dispute propelled both companies' stocks up. BofA will pay $1.7 billion to MBIA and extend the troubled company a credit line.
MBIA soared 45 percent, or $4.46, to $14.29. Bank of America gained 5 percent, or 64 cents, to $12.88, making it the leading company in the Dow Jones industrial average.
The Dow slipped 5.07 points to close at 14,968.89. The Standard & Poor's 500 index crept up 3.08 points to 1,617.50, a gain of 0.2 percent.
Six of the 10 industry groups in the S&P 500 rose, with financial companies in the lead.
A handful of companies reported quarterly results. Tyson Foods, the nation's largest meat-processing company, fell 3 percent, the biggest drop in the Standard & Poor's 500 index. The company reported its net income sank as costs for chicken feed rose. Tyson's stock lost 83 cents to $24.10.
Companies have reported solid quarterly profits so far this earnings season. Seven of every 10 big companies in the S&P 500 have beat the earnings estimates of financial analysts, according to S&P Capital IQ. But six of 10 have missed revenue forecasts.
“Yet again, corporations continue to do more with less,” said Dan Veru, the chief investment officer of Palisade Capital Management.
Veru said the trend is likely to lead to more mergers in the coming months, as cash-rich companies look for ways to raise revenue. A wave of mergers could shift the stock market's rally into a higher gear, he said.
The Nasdaq composite rose 14.34 points to 3,392.97, up 0.4 percent. The price of crude oil edged up 55 cents to $96.16, and gold rose $3.80 to $1,468.10 an ounce.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- As historic breakup nears, Alcoa works to redefine its ‘advantage’
- Older workers try to cut back on hours at job
- Batteries key to alternative energy’s success
- Asian bug threatens oranges in Florida
- Program lets public service workers be forgiven for student debt
- Key gets stuck in ignition
- Employers cut back on holiday office parties
- Small stores take big gamble by not upgrading credit card readers
- Travelers contend with increase in ground delays
- $170.4M AmEx charge yields whopping perk for Chinese billionaire
- Paying pals digitally catches on