Shares Rise Despite More Problems for Two Major Banks
Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.
With just about an hour left in the trading day, the Dow Jones Industrial Average was up almost 50 points for the day after trading higher for the majority of the session. But when the closing bell rang, the index sat lower by 7.75 points, or 0.05%. Despite the Dow's poor ending, though, the other two major indexes did both move higher, with the S&P 500 gaining 0.38% and the Nasdaq 0.68%.
Sentiment overall was good today on Wall Street as investors were given some upbeat news about the economy and consumer spending after a few big retailers reported earnings this morning. But those positive feelings and a few big winners on the big board weren't enough to hold the blue-chip average up. Let's take a brief look at some of those winners today.
Shares of Bank of America rose 0.99% today even after reports that an intern in the company's London office was found dead last week in his home. While it is still unknown what caused the 21-year-old's death, many news outlets used this as a reason to call for reform of the overall culture within the financial industry. This incident may again put Bank of America back in the crosshairs of federal regulators and the long arm of the law, after JPMorgan Chase did such a great job of taking the heat from investigators and the press for the past few days.
JPMorgan has been in the limelight lately, with the most recent being the announcement that two former employees involved in the London Whale incident were being indicted, new criminal probes into the company's involvement with mortgage-backed securities, and then news on Sunday that the bank may have received contracts because of jobs the bank gave to two Chinese officials. These recent problems pushed JPMorgan's spokesman Joe Evangelisti recently to say, "We are committed to making sure that our business systems, practices, controls and culture meet the highest standards. This is our top priority." That comment and the trust many investors put in CEO Jamie Dimon's ability to get the bank cleaned up may have been the reason shares rose 0.56% today.
Shares of Intel jumped 1.09% today after the stock gained 1.2% yesterday on the back of an upgrade. Today's move higher could be the result of both the upgrade and the announcement that Intel plans to ship out its new LTE multimode chips this month. The market is dominated by Qualcomm, which controls 97% of the broadband market for LTE. While that is a massive amount and surely Qualcomm isn't just going to give away the business, that does mean that Intel will only have to present a better product than Qualcomm and not a slew of other competitors. Also, it might indicate that the market may be ready for another player, and that would help control prices.
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The article Shares Rise Despite More Problems for Two Major Banks originally appeared on Fool.com.Fool contributor Matt Thalman owns shares of Bank of America and JPMorgan Chase & Co.. Check back Monday through Friday as Matt explains what caused the Dow's winners and losers of the day and every Saturday for a weekly recap. Follow Matt on Twitter @mthalman5513 . The Motley Fool recommends and owns shares of Bank of America and Intel. It also owns shares of JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.