Goldman Sachs (GS) rose 5.1% in late afternoon trading, leading a rally in the financial sector that lifted the entire market for much of the day. Bank of America (BAC) also spent much of the day trading more than 2% higher.
The rally was most likely caused by a drop in borrowing costs for France and Spain, which sold bonds earlier in the day. With Greece’s bailout package virtually assured, the market is now worried about other European countries. Spain’s success in particular is helping fuel confidence.
In late trading, the broader market has weakened somewhat after a report of a pipeline explosion in Saudi Arabia fueled a late oil rally, but financial stocks are still showing strength.
Goldman, which said earlier this week that is has received a Wells notice regarding mortgage securities, indicating civil charges might be forthcoming, is up 34% this year.
No comments:
Post a Comment