Stocks topped a four-month high as it was revealed that most of the bank in question by the Federal Reserve pass their stress-tests.
[B][U]US Session Key Developments[/U][/B]
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[li][B]Most Banks Are Said to Have Sufficient Capital[/B] [/li][li][B]Bank of America, Citi Require $34 Bln, $5 bln[/B] [/li][/ul]
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[B]Stocks Hit a Four Month High On Positive Stress-Test News[/B]
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Stocks topped a four-month high as it was revealed that most of the bank in question by the Federal Reserve pass their stress-tests. Investment banking-giants like Goldman Sachs and Morgan Stanley were grouped with those institutions with sufficient capital required to survive harsh economic conditions. Prior to the market’s open, during the European trading session, people familiar with the matter leaked the news that Bank of America was the biggest failure out of the 19 tested banks. Indeed, the Charlotte, North Carolina-based company is required to raise $34 billion if it wishes to return the TALF money raised from the federal government.
[B]Dow 30 8512.28 +101.63 +1.21%[/B]
The Dow had a very mixed day, with Technology and Health Care slipping by 1.0% and 0.54%, respectively. The latter suffered from Pfizer’s fall, which came on the day that the stock traded for the first time without the right to receive the 16 cent per share dividend that the company had announced on April 23.
[B]SPX 500 919.53 +15.73 +1.74%[/B]
S&P 500 stocks beat the other two indices while seeing the Utilities sector slip. Utilities fell after it was revealed that a major power-plant managed by FPL Group, the Florida-based electricity producer, was found to have a defect that would keep it out of commission.
[B]NAS 100 1759.10 +4.98 +0.28%[/B]
Tech stocks performed the worst of the three major indices.
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[B][U]Notable US Event Risk / Economic Releases[/U][/B]
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