Alexa
  • Directory of Taiwan

Stocks mixed after prior day's big gains

Stocks mixed after prior day's big gains

Caution returned to Wall Street Tuesday ahead of results of the government's stress tests of banks.
Stocks were narrowly mixed in early trading following a big advance Monday that sent one key Wall Street indicator, the Standard & Poor's 500 index, into positive territory for the year and the Dow Jones industrials up more than 200 points. Positive news on the housing market fueled the gains.
Investors are anxious for the stress test results, due Thursday, which will provide details on the U.S. banks in need of more capital.
Reports have surfaced indicating that Citigroup Inc., Bank of America Corp. and Wells Fargo & Co., as well as a handful of regional banks, will be among that group.
On Tuesday, The Wall Street Journal said about 10 of the 19 banks undergoing the tests will be required to boost their capital levels as a buffer against potential future losses. The report cited several unidentified people familiar with the matter.
Regulators have said no large institution will be allowed to fail, and have pledged government funds if necessary. Though some investors are worried the report could indicate more pain in the industry than previously thought, many analysts say results of the tests are largely priced into the market already.
In the first half hour of trading, the Dow added 7.33, or 0.1 percent, to 8,434.07. The Standard & Poor's 500 index fell 0.34, or 0.04 percent, to 906.90, while the Nasdaq composite index fell 5.19, or 0.3 percent, to 1,758.37.


Updated : 2021-04-22 09:18 GMT+08:00