The S&P 500 and Nasdaq rose on Monday as bets that major banks will post reassuring quarterly results fueled a run-up in financials, offsetting uneasiness about the fate of General Motors
The Dow, however, slipped after Boeing
Banking sector optimism followed surprisingly upbeat preliminary quarterly results from Wells Fargo
After the bell, Goldman Sachs
Shares of JPMorgan, due to post results on Thursday, rose almost 3 percent to $33.70, while Bank of America
The market is cheering, not so much that the banks are on the mend, but that they are not going to die, said Les Satlow, portfolio manager of Cabot Money Management in Salem, Massachusetts. These are banks that are clawing their way back, literally from the brink of extinction. My view is that a key crisis phase of this economic downturn is behind us.
The Dow Jones industrial average <.DJI> fell 25.57 points, or 0.32 percent, to 8,057.81. The Standard & Poor's 500 Index <.SPX> gained 2.17 points, or 0.25 percent, to 858.73. The Nasdaq Composite Index <.IXIC> rose just 0.77 of a point, or 0.05 percent, to 1,653.31.
The banking sector's health has been a major worry after fallout from the financial crisis led the U.S. government to pump billions of dollars into troubled institutions such as Citigroup, which gave Wall Street a surprise last month when it said it was profitable in January and February.
That optimism has fueled a month-long recovery of the stock market from 12-year lows hit in early March. Since setting a bear market closing low on March 9, the S&P 500 has risen 27 percent.
GOLDMAN SLIPS AFTER THE BELL
In after-hours trading, the Select Sector SPDR Financial
On Nasdaq, the bright spot was Express Scripts Inc
A brokerage raised its 2009 profit view for Wal-Mart Stores
But Boeing finished the day as the Dow's biggest drag after the aircraft maker's gloomy outlook. The stock tumbled
5.1 percent to $37.15.
The prospect of bankruptcy for General Motors
Energy shares were another drag, after oil prices fell following a lowered global demand forecast from the International Energy Agency. Exxon Mobil
Trading was moderate on the New York Stock Exchange, where about 1.48 billion shares changed hands, slightly below last year's average daily volume of 1.49 billion. On the Nasdaq, about 1.84 billion shares traded, below last year's average daily volume of 2.28 billion.
Advancers outnumbered decliners on the NYSE by a ratio of about 3 to 2, while on the Nasdaq, the spread was about evenly divided, with 1,353 stocks advancing and 1,358 declining.
(Editing by Jan Paschal)