Bank of America stock is up 22.6% this morning and its shares are up to $8.57, from $6.99 yesterday, after it was announced that Warren Buffett’s Berkshire Hathaway would invest $5 billion in Bank of America.Bank of America’s stocks had been down as investors feared it wasn’t capitalised enough to repay its problem mortgage loans and Buffets investment has boosted Bank of America and some other major banks.
Financial stocks that had been hit during the recent volatility also seem to be up on the news. 9 of the top 10 stocks on the rise are financials.
The S&P however is still slightly down.
Here’s how the others are shaping up:
- Morgan Stanley: +7.8%, down from +8.44%
- Citigroup: +6.7% from +9.03% a little earlier this morning
- Wells Fargo & Co.: +4.5%
- JP Morgan Chase & Co.: +4.1% down from +6.45% earlier this morning
- U.S. Bancorp: +4%
- Zions Bancorporation: +4.6%
- State Street Corp: +3%
- Goldman Sachs: +2.9% (Goldman has been down ever since Lloyd Blankfein hired a defence attorney).