Another Big Bank Reports Earnings, Stocks Rally
After Citi (C) reported better than feared results, and its stock gapped higher, many wondered whether BofA (BAC) could possibly duplicate that feat. Investors breathed a sigh of relief this morning, when BAC reported results above expectations, and the stock rallied sharply +11%. This boosted the financials as a group, and the market in general.
Biotechs are also getting another boost, after a solid week last week, on news that Roche has made an offer to acquire the remainder of Genentech (DNA) that it does not already own. The stock is spiking +14% on the news, and the biotech index (BTK) is up +2.1% so far.
In other pharma news, Merck (MRK) and Schering-Plough (SGP) are delaying their earnings reports until after the close today, to allow them to provide an update regarding a new study on Vytorin.
Asian markets were higher across the board overnight, as financials strengthened; oil is trading higher this morning, back near $130; the 10-year yield is up again, to 4.10%; and the VIX is down further to 23.71 (-1.4%).
I'll be back with an investor sentiment roundup a little later.