Citi and BofA Up thanks to Goldman

Goldman Sachs (NYSE:GS) went to bat today for large U.S. Banks, their report showed service industries returned to growth after 11 months of contraction.  Wells Fargo (NYSE:WFC) is the big winner up 6%, but holding its own this morning are Bank of America (NYSE:BAC) and Citigroup (NYSE:C) both up nearly 3%.

Plain and simple, Goldman Sachs said big banks will outperform regional lenders.  Bank of America's gain also came as The Wall Street Journal reported that the bank's board will meet this week to pick an emergency chief executive in case legal turmoil forces Kenneth D. Lewis to step down before year end as planned.

The technology-heavy Nasdaq Composite Index rose 0.9%. The S&P 500 was up 1.2% as its financial sector climbed 2.7%, followed by a 2.1% rise in its energy category. The index's only sector in the red was consumer staples, which slipped 0.1%.

Monday's gains came after the Institute for Supply Management said its monthly nonmanufacturing index, a measure of the U.S. service sector's health, rose to 50.9 in September, up from 48.4 in August. The measure's recent rise above 50 means that it is now signaling growth in overall activity.

The better-than-expected data Monday followed a number of readings on employment and manufacturing last week that came in below expectations, casting doubt on the scenario that many investors have bet on for a strong late-year rebound in the U.S. Stocks sputtered last week on the disappointing data.

SOURCE: http://online.wsj.com/article/SB125474108817864243.html?mod=rss_Today's_Most_Popular