Financial Shares Surge in Pre-Market Session

Bank of America's announcement to exit the international credit card business and other financial news drove up shares in the pre-market session on August 15, 2011. The release of the Empire State Manufacturing Survey for August and the National Association of Home Builders' August housing market index will also be closely watched. In a significant move, Bank of America agreed to sell its $8.6 billion Canadian credit card portfolio to TD Bank Group. As shares of Bank of America traded higher, other financial companies also experienced gains.

Key Takeaways:

• Bank of America announced it will exit the international credit card business, including the sale of its $8.6 billion Canadian credit card portfolio to TD Bank Group.
• The bank will also exit its credit card businesses in the U.K. and Ireland.
• Shares of Bank of America traded 3.20% higher at $7.42 before the bell.
• FBR Capital upgraded TCF Financial to Market Perform from Underperform, with a price target of $11 from $12.
• Shares of TCF Financial are flat at Friday's close of $9.92.
• The pre-market session saw gains in top financial shares, including JPM, WFC, C, and USB.

Statistics:

• Bank of America's shares traded 3.20% higher, reaching $7.42 before the bell.
• The company will sell its $8.6 billion Canadian credit card portfolio to TD Bank Group.
• The price target for TCF Financial was lowered to $11 from $12.
• TCF Financial shares are flat at $9.92 as of Friday's close.
• The pre-market session saw gains in top financial shares, with JPM +0.92%, WFC +3.32%, C +1.51%, and USB trading higher.

Sources:

• "Top Financial Shares: JP Morgan, Bank of America, Wells Fargo, CITigroup, US Bank", MidnightTrader, August 15, 2011.
• "FBR Capital Upgrades TCF Financial to Market Perform", MidnightTrader, August 15, 2011.
• Comtex SmarTrend Alert, August 11, 2011.
• Comtex SmarTrend Alert, January 25, 2011.
• Comtex SmarTrend Alert, March 10, 2011.