Easing worries about Goldman and strong profit numbers from Citigroup helped lift financial shares and the broader market even as speculation about possible changes to financial-industry regulations hovered over Wall Street.
Stocks seesawed through afternoon as traders came to terms with the government’s charges against the Wall Street giant. A late-session rally, however, put the beaten-down financial shares in the driver’s seat. Shares in Citigroup (NYSE:C) surged after its quarterly profit report surprised investors. Goldman (NYSE:GS) advanced 1.6% even as the Securities and Exchange Commission voted 3-2 on party lines to press the civil fraud charges against the firm. Goldman said it will fight the charges.
Shares of airlines companies also felt the heat of a volcanic eruption in Iceland that has resulted in cancellations of hundreds of flights and stranded passengers across airports. American Airlines parent AMR Corp. (NYSE:AMR) retreated 4.3%, while shares in UAL Corp. (NASDAQ:UAUA), the parent of United Airlines, dropped 5.1%. The spread of ash resulting from the eruption has enveloped European airspace, and analysts estimate the losses resulting from the ash cloud at more than $1 billion.
Zacks Investment Research
