TribLIVE

| Business


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

BofA leads banks up; S&P 500 index ekes out gain

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

By The Associated Press
Monday, May 6, 2013, 4:42 p.m.
 

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.

Subscribe today! Click here for our subscription offers.

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. Kennametal plans plant closings, job cuts in fallout from oil and gas decline
  2. Consol Energy posts $74M profit in fourth quarter
  3. BNY Mellon is putting iconic Citizens Bank Tower up for sale
  4. BNY Mellon expands  role for treasury exec
  5. Almost half of households exhaust their income
  6. Alibaba finally called out on counterfeits
  7. Credit card privacy a myth, study shows
  8. Emergency room visits decline as navigators steer patients to proper medical care
  9. Wolf signs ban on new drilling beneath state land
  10. Fight to lift crude export ban grows
  11. Pipeline companies weather downturn in prices of natural gas, oil