Featured # Markets | 2 years ago

Wall Street Gains on Rebound in Deutsche Bank’s shares

Wall Street extended increases on Friday as a rebound in Deutsche Bank’s shares helped boost financial stocks among wide gains across sectors. The S&P 500 financial index gained 1.21 percent, outpacing advances in other major sectors. The index had dropped almost 1.5 percent on Thursday, ignited by decreases in Deutsche Bank and Wells Fargo. Deutsche Bank’s U.S-listed stock hiked 12.3 percent following French news agency AFP reported that the bank was nearing a settlement with the U.S. Department of Justice regarding mortgage bonds.

The stock took a hit on Thursday on news that a number of hedge funds had pulled out collateral as the bank deals with a $14 billion demand from U.S. authorities for misselling mortgage-backed securities.

“Deutsche Bank’s problem is probably not as big of a magnitude as people might think,” said Randy Fredrick, managing director of trading and derivatives at Charles Schwab.

At 11:25 a.m. ET the Dow Jones industrial average gained 184.12 points, or 1.01 percent, at 18,327.57. The S&P 500 advanced 18.52 points, or 0.86 percent, at 2,169.65. The Nasdaq Composite increased 41.67 points, or 0.79 percent, at 5,310.82. Ten of the 11 major S&P 500 sectors increased, while utilities was the only sector in the red. Advancing issues outnumbered drops on the NYSE by 2,217 to 653. On the Nasdaq, 1,974 issues increased and 676 decreased. The S&P 500 index displayed 17 new 52-week highs and three new lows, while the Nasdaq notched in  46 new highs and 25 new lows.

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