Bank stocks drive up indexes; oil prices dip
NEW YORK - Financial companies pushed stock indexes higher Tuesday on signs that banks may soon raise their dividends. Bank of America Corp. shares gained 4.7 percent, the most of the 30 stocks that make up the Dow Jones industrial average, after chief executive officer Brian Moynihan said at an investor's meeting that the bank could earn more money over the next two year
NEW YORK - Financial companies pushed stock indexes higher Tuesday on signs that banks may soon raise their dividends.
Bank of America Corp. shares gained 4.7 percent, the most of the 30 stocks that make up the Dow Jones industrial average, after chief executive officer Brian Moynihan said at an investor's meeting that the bank could earn more money over the next two years as its business stabilizes. That led analysts to note that large consumer banks may raise their dividends. Banks slashed dividends during the 2008 financial crisis to cut costs.
Financial stocks in the S&P 500 index rose 2.2 percent, the most of any of the index's 10 company groups. Shares of American Express Co. gained 3.5 percent, and those of JPMorgan Chase & Co. gained 2.7 percent.
Falling oil prices also helped stocks move higher. Oil prices dipped 0.4 percent to $105 a barrel after Kuwait's oil minister said that OPEC members are in informal talks about raising oil output as the conflict in Libya continues.
"Rapidly higher moving oil prices can substantially impact demand," said Oliver Pursche, president of Gary Goldberg Financial Services. It is something OPEC members are "very, very much aware of and want to avoid."
Oil prices have risen 9 percent this month. That has pushed stocks lower as investors worry that higher gasoline prices will dampen the economic recovery.
The Dow Jones industrial average gained 124.35 points, or 1 percent, to 12,214.38. The S&P 500 rose 11.69, or 0.9 percent, to 1,321.82.
Energy companies were the only group in the S&P index to fall, losing 0.6 percent.
The Nasdaq composite rose 20.14, or 0.7 percent, to 2,765.77.
Shares of Brown-Forman Corp. rose 4.8 percent after the liquor company said its net income rose 30 percent in the latest quarter thanks to growing international sales and a strong performance by its flagship Jack Daniel's brand.
Urban Outfitters Inc. shares fell 16.7 percent after the Philadelphia apparel retailer's earnings missed Wall Street's expectations because of higher expenses.
Shares of Netflix Inc. fell 5.8 percent after Facebook announced that it would allow members to stream movies through its pages, a direct competition to Netflix's popular on-demand offering.
Three stocks rose for every one that fell on the New York Stock Exchange. Consolidated volume came to 4.3 billion shares.