U.S. equities were enjoying a broad rally on Tuesday after Citigroup CEO Vikram Pandit said in an internal memo that the beleaguered financial giant was having a profitable beginning to 2009.
“I am most encouraged with the strength of our business so far in 2009,” Pandit wrote in an internal memorandum obtained and published today by Bloomberg. “In fact, we are profitable through the first two months of 2009 and are having our best quarter-to-date performance since the third quarter of 2007.”
Shares in Citigroup were recently trading 37.14% higher to $1.44. The news was helping the other banks as well; Bank of America was gaining 27.47%, JP Morgan 19.62% and Wells Fargo 18.15%. The KBW regional bank index was higher by 12.50%, while the XLF financial sector ETF gained 12.62%.
Over 97% of stocks on the NYSE were trading in the green as the DOW gained 4.59% and the S&P a massive 5.35%. The technology-focused NASDAQ was 5.81% ahead on the day.
The dollar was lower across the board, with declines of 1.20% to the euro, 2.47% against Australia's dollar, 0.55% to the yen and 0.47% compared to cable.
Crude for March delivery was little changed with a gain of 0.28% while April gold continued its recent slide with a decline of 2.21%.