Stocks soar as America's biggest banks are booming
New York (CNN Business)Several of America's largest financial firms reported strong earnings and revenue Thursday thanks to solid demand for loans, better credit quality and a boom in mergers and initial public offerings.
Morgan Stanley (MS), Citigroup (C), Bank of America (BAC) and even troubled Wells Fargo (WFC) posted healthy results that surpassed analysts' expectations.
Shares of BofA were higher in early trading, while Morgan Stanley and Citi were flat. Wells Fargo's stock fell.
The tepid reaction from investors might be partly a "sell the news" phenomenon. Bank stocks have already surged this year on hopes of an economic rebound and rising long-term bond yields, which help to boost lending profits.
But the broader market enjoyed an earnings rally. The Dow rose nearly 400 points, or more than 1%, Thursday …
More on: www.cnn.com