News (Stay Informed)
Stocks surge to two year high.
by Wall Street Journal:
Stocks closed at fresh two-year highs as financial companies’ shares continued to benefit from recent merger activity.
The Dow Jones Industrial Average rose 26.33 points, or 0.23%, to 11559.49, its highest close since Aug. 28, 2008. The measure’s financial components led its advance, with Bank of America up 40 cents, or 3.1%, to $13.38, while J.P. Morgan Chase rose 1.16, or 2.8%, to 42.16.
The Nasdaq Composite edged up 3.87, or 0.15%, to 2671.48, a three-year closing high. The Standard & Poor’s 500 index advanced 4.24, or 0.34%, to 1258.84, its highest close since Sept. 8, 2008.
Financials led the climb as investor sentiment toward the sector continued to improve following recent deal activity including Toronto-Dominion Bank’s Tuesday announcement of a $6.3 billion purchase of the former auto-lending arm of Chrysler andBank of Montreal’s agreement last week to buy a big Midwestern bank in a $4.1 billion share swap.
Regional banks in particular have been boosted by the activity as investors search for the next potential acquisition targets. Regions Financial jumped 46 cents, or 7.1%, to 6.91, while First Horizon National leapt 47 cents, or 4.2%, to 11.75, SunTrust Banks added 99 cents, or 3.6%, to 28.85, and Fifth Third Bancorp advanced 41 cents, or 2.9%, to 14.71.
“The new leadership coming from financials is a very welcome sign and very, very encouraging for the overall market,” said Ryan Detrick, senior technical analyst at Schaeffer’s Investment Research. “It’s a very influential group, without question. Everybody remembers financials got us into this big mess a couple years ago, and they’re going to have to lead us out.”
Great news for business owners as consumers/investors are beginning to revive the market.