showing particular strengthJun 18 2009 1:00pm
Financial stocks are showing particular strength as they climb 2.3%. Regional banks are up a handsome 3.0% as they recover from the prior session's hit, which stemmed from Standard & Poor's decision to lower its ratings for 22 banks. Fifth Third Bancorp (FITB 7.15, +0.34) is showing particular strength; it announced that its tender offer has satisfied its commitment to increase its Tier 1 common equity by $1.1 billion.
Consumer finance stocks (+1.6%) are also providing support to the broader financial sector, thanks to a pleasing quarterly report from Discover Financial (DFS 9.43, +0.52). Specifically, the company's managed net charge-off rate increased, but to a lesser degree indicated during its conference call that reform will make the industry smaller, but less risk will result.