The Dow's Rising Again This Morning
As if yesterday's big move upward wasn't enough, the stock market added to its gains with a more modest advance this morning. Economic news that import prices rose and a widening trade deficit took a back seat to a controversy surrounding the departure of a Goldman Sachs executive and his revelations about the Wall Street firm's business practices. At around 10:45 a.m. EDT, the Dow Jones Industrials (INDEX: ^DJI) were up 38 points to 13,216. The S&P rose a point to 1,397.
The big news from last night was the release of the Federal Reserve's latest stress test results. Bank of America (NYS: BAC) was the big winner, gaining 4% on news that it had passed the test, while American Express (NYS: AXP) had a 3% move. JPMorgan Chase (NYS: JPM) also advanced, although less strongly as its success on the stress tests was more expected. JPMorgan announced that it would increase its dividend following the favorable results, but B of A said that it planned to keep its currently low dividend payout unchanged, presumably to help it in its continuing efforts to keep capital levels high. AmEx hasn't made a dividend announcement yet.
On the down side, Disney (NYS: DIS) fell 1.6% after nearly hitting a 52-week high on Tuesday. Despite objections from investors, CEO Bob Iger officially took over as board chairman yesterday. He'll have the dual role until at least early 2015.
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At the time this article was published Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. You can follow him on Twitter here. The Motley Fool owns shares of JPMorgan Chase and Bank of America. Motley Fool newsletter services have recommended buying shares of Walt Disney and writing a covered strangle position in American Express. 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 Fool has a disclosure policy.
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