Go Finance Reporting - this time it appears the financial sector led the strengthening of the stock index in the United States. In fact, the S & P 500 back scored a record high since the collapse of Lehman Brothers in 2008 because this sector is sustained.
The banking sector, which is the source of the crisis two years ago seemed to support the strengthening of the stock index at the end of this year. As a result, the stock index continued its rally. The KBW Bank Index was up 1.9 percent.
"The financial sector is very unique, because this sector has been performing at lower levels for two consecutive years," said portfolio manager of Federated Clover Lawrence Creatura in Rochester, New York, as quoted by Reuters.
"The financial sector today looks a little more investable than conditions at 18 or 24 months ago. This is because the price is right and risk have also been extracted," he added.
The CBOE Volatility Index are used as indicators of investor concerns on Wall Street fell 6.3 percent to 15.45. This is the lowest close since July 2007.
Shares of Bank of America Corp. climbed 3.1 percent to USD13, 38 and JPMorgan Chase & Co. also rose 2.8 percent to USD42, 16. Stock performance is what gives a boost to the Dow Jones to strengthen.
The issue of merger between the issuer banks also appear to be a positive sentiment. Hancock Holding Co. agreed to purchase Whitney Holding Corp. last week. While Marshall & Ilsley Corp. will likely be taken by the Bank of Montreal.
In late trading Wednesday (22/12/2010), the Dow Jones industrial rose 26.33 points, or 0.23 percent, to 11559.49. The broader Standard & Poor's 500 index rose 4.24 points, or 0.34 percent to 1258.84. as well as the Nasdaq Composite Index edged up 3.87 points, or 0.15 percent to 2671.48 position. (GoFinance)
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