Bank of America, MBIA news leads market rally
Bank of America led a rally in big-bank stocks in mostly quiet trading on Monday. Stock indexes ended little changed following a record-setting run last week.
News that Bank of America Corp. and MBIA Inc., a bond-insurance company, had reached a settlement over a long-running dispute boosted both companies' stocks. Bank of America will pay $1.7 billion to MBIA and extend the troubled company a credit line.
MBIA shares soared 45.37 percent to $14.29. Bank of America gained 5.23 percent 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 0.19 percent to 1,617.50. Six of the 10 industry groups in the S&P 500 rose, with financial companies in the lead. The Nasdaq composite index rose 0.42 percent to 3,392.97.
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 revenue has looked weak: 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. -- AP