Financials Are Up Huge On News Of Berkshire's Investment In Bank Of America

stock market

Photo: AP

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).

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.