Stocks pared gains on Friday after a much anticipated concept paper on the government stress tests for the 19 biggest U.S. financial institutions was released.
The concern is that as more information comes to the markets, banks having to raise capital will face more pressure, said Blake Howells an analyst at Becker Capital Management in Portland, Oregon. No one knows how much downside there could be in their stocks, how much capital will be raised and what form that capital will take. Those are the unknowns.
The Dow Jones industrial average <.DJI> gained 88.17 points, or 1.11 percent, to 8,045.23. The Standard & Poor's 500 Index <.SPX> rose 9.40 points, or 1.10 percent, to 861.32. The Nasdaq Composite Index <.IXIC> added 28.76 points, or 1.74 percent, to 1,680.97.
(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)