Bank of America: Euro Baby Steps Winner
NEW YORK (TheStreet) -- Bank of America (BAC) was the winner among the largest U.S. financial names on Friday, with shares rising 6% to close at $8.18.
The Dow Jones Industrial Average (^DJI) rose over 2%, while the S&P 500 (SPX.X) rose 2.5% and the NASDAQ Composite (^IXIC) index ended the month by rising 3%, as investors showed their relief after European leaders agreed to use the European Stability Mechanism to recapitalize troubled banks, without increasing member nations' sovereign debt.
During the European summit, leaders also unveiled a $149 billion economic growth plan for the eurozone, but there was no mention of any agreement on the "stronger EMU architecture" suggested earlier this week by top eurozone officials led by European Council president Herman Van Rompuy, for centralized supervision of banks, and closer coordination of eurozone member nations' budget processes.
The KBW Bank Index (I:BKX) rose 3% to close at 45.79, with 22 out of 24 index components showing gains for the session.
Bank of America's shares have now returned 47% year-to-date, after dropping 58% during 2011.