Financial Stocks Close Higher Amid Market Volatility

Strategic Insights -

The Dow Jones U.S. Financials Index saw a surge of +2.03 (+0.76%) to close at 268.30 on the regular session, a rare moment of respite in a tumultuous market. Financial stocks throughout the sector showed gains, despite significant fluctuations in individual shares. Key movers in the sector included JPM, BAC, WFC, GS, and C, each recording increases ranging from +0.21% to +1.82%.

Key Takeaways:

  • Cascade Bancorp (CACB) shares plummeted after announcing the withdrawal of a $93 million common stock offering.
  • Jackson Hewitt Tax Service (JTX) experienced a significant decline following reports that Pacific Capital Bancorp (PCBC) had signed a letter of intent to sell its tax division to a private equity fund, thus ending its potential partnership with the tax preparer.
  • Valley National Bancorp (VLY) saw its shares firm up after repaying the final $100 million it owed the U.S. government under the Troubled Asset Relief Program (TARP).
  • The repayment of TARP funds marked the culmination of Valley National Bancorp's payment obligations to the U.S. government.
  • Jackson Hewitt Tax Service stated that the sale of Pacific Capital's tax division, which would have provided about 75% of its financial products for the 2010 tax season, would necessitate alternative arrangements to prevent interruptions.

Statistics:

  • Dow Jones U.S. Financials Index closed at +2.03 (+0.76%) to 268.30.
  • JPM shares increased by +0.79%.
  • BAC shares rose by +0.39%.
  • WFC shares climbed by +0.89%.
  • GS shares gained +0.21%.
  • C shares surged +1.82%.
  • Cascade Bancorp (CACB) charge dropped 93 million USD.
  • Pacific Capital Bancorp (PCBC) signed a letter of intent to sell its tax division to a private equity fund.
  • Jackson Hewitt Tax Service (JTX) dependency on Pacific Capital's tax division fell to 75%.

Sources:

  • "Boston, Dec 24, 2009 (MidnightTrader via COMTEX) -- Dow Jones U.S. Financials Index: +2.03 (+0.76%) at 268.30 (regular session close)"
  • "Copyright (C) 2009 MidnightTrader.com. All rights reserved."
  • "As of Sunday, 12-20-2009 23:59, the latest Comtex SmarTrend Alert, an automated pattern recognition system, indicated an UPTREND on 11-11-2009 for BAC @ $16.41."
  • "As of Sunday, 12-20-2009 23:59, the latest Comtex SmarTrend Alert, an automated pattern recognition system, indicated a DOWNTREND on 10-28-2009 for C @ $4.13."
  • "As of Sunday, 12-20-2009 23:59, the latest Comtex SmarTrend Alert, an automated pattern recognition system, indicated a DOWNTREND on 12-08-2009 for GS @ $162.58."
  • "For more information on SmarTrend, contact your market data provider or go to www.mysmartrend.com SmarTrend is a registered trademark of Comtex News Network, Inc."