Despite a flat day for top indices, the HW 30 and top-tiered banks managed to escape the standard and recorded near-record highs amid pending stress test results.
The HW 30 — HousingWire’s exclusive list of mortgage related stocks — finished the day up 1.14%.
But it was the too-big-to-fail banks that really witnessed a profitable day on the market.
According to an article from Seeking Alpha, Bank of America (BAC) was within 1% of a four-year high, closing the day up 3.11%.
Year-over-year, Bank of America is up 51.18%.
Meanwhile, JPMorgan Chase (JPM) and Wells Fargo (WFC) jumped 1.57% and .75%, respectively.
And it is predicted this trend won't change with the coming stress-test results.
The Seeking Alpha article quoted Citigroup (C) saying, “With bank capital levels really no longer in question, don't expect any big pops in the banks surrounding the stress tests and CCAR results. If anything – given that the stress tests are supposedly tougher this year – the risk to banks could be on the downside.”
It continued, “The team expects the stress-test results – which looks at bank balance sheets under different scenarios – sometime around March 7 and the CCAR results – on which the Fed approves/disapproves capital return plans – about a week later.”
