Bank stocks miss the rally

By Paul R. La Monica, CNNMoney
2008-10-13 12:48:39

NEW YORK (CNNMoney.com) -- The stock markets finally enjoyed a good day, cheered by the news that global governments are taking unprecedented steps to ensure that the world's banking system does not crumble.

The Dow shot up nearly 940 points, or 11%, on Monday while the S&P 500 and Nasdaq each gained nearly 12%, following similar surges in European and Asian stock markets.

But on a day when investors are rejoicing about steps taken to shore up confidence in banks, someone forgot to invite bank stocks to the rally.

Sure, Morgan Stanley (MS, Fortune 500) soared more than 85% thanks to the news that Japan's Mitsubishi UFJ (MTU) completed its deal to invest $9 billion in the embattled Wall Street firm. Citigroup (C, Fortune 500) and Goldman Sachs (GS, Fortune 500) were also standouts, gaining about 14% and 26% respectively.

But the S&P Banking Index trailed the broader market and was up only about 4.5%...and most of those gains came in the explosive last half hour of trading.

Shares of several top banks, including JPMorgan Chase (JPM, Fortune 500), Wells Fargo (WFC, Fortune 500) and U.S. Bancorp (USB, Fortune 500), were all trading flat to slightly down for most of the day before gaining ground in the last half hour.

One market strategist pointed out that these particular banks were all widely thought to be among the more conservative banks - i.e. the ones least at risk of a wholesale collapse.

	Investment Basic Investment Overview Investment Approache Fundamentals Data Investment Stories www.fxj108.com	Bank stocks miss the rally By Paul R. La Monica, CNNMoney 2008-10-13 12:48:39 NEW YORK (CNNMoney.com) -- The stock markets finally enjoyed a good day, cheered by the news that global governments are taking unprecedented steps to ensure that the world's banking system does not crumble. The Dow shot up nearly 940 points, or 11%, on Monday while the S&P 500 and Nasdaq each gained nearly 12%, following similar surges in European and Asian stock markets. But on a day when investors are rejoicing about steps taken to shore up confidence in banks, someone forgot to invite bank stocks to the rally. Sure, Morgan Stanley (MS, Fortune 500) soared more than 85% thanks to the news that Japan's Mitsubishi UFJ (MTU) completed its deal to invest $9 billion in the embattled Wall Street firm. Citigroup (C, Fortune 500) and Goldman Sachs (GS, Fortune 500) were also standouts, gaining about 14% and 26% respectively. But the S&P Banking Index trailed the broader market and was up only about 4.5%...and most of those gains came in the explosive last half hour of trading. Shares of several top banks, including JPMorgan Chase (JPM, Fortune 500), Wells Fargo (WFC, Fortune 500) and U.S. Bancorp (USB, Fortune 500), were all trading flat to slightly down for most of the day before gaining ground in the last half hour. One market strategist pointed out that these particular banks were all widely thought to be among the more conservative banks - i.e. the ones least at risk of a wholesale collapse.