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Bank of America Corp (BAC), MBIA Inc. (MBI): Dow (.DJI) Pauses With 15K In Sights

Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI).

Editor’s note: This article was originally published yesterday, after market close.

Stocks were mostly flat today as the S&P 500 hit a new record high at 1617.50, but the Dow Jones Industrial Average (Dow Jones Indices:.DJI) was down slightly by five points, or 0.03%. No major news was pushing markets as investors continued to digest last week’s bullish announcements, including the federal employment report, and on monetary policy both at home and in Europe. There were no economic reports released today, and no major earnings reports out.

After hours, the Senate approved the Marketplace Fairness Act, taking an important step toward imposing an Internet sales tax that would help brick-and-mortar retailers compete on a level playing field with the likes of online heavyweights such as Amazon.com, Inc. (NASDAQ:AMZN). The law could also be a boon for big-box chains like Best Buy Co., Inc. (NYSE:BBY). The bill will now move on to the House where Republicans are divided on its passage.

On the Dow today, Bank of America Corp (NYSE:BAC) was the big winner, gaining 5.2% after settling a long-standing dispute with insurer MBIA Inc. (NYSE:MBI) over mortgage bonds issued during the housing bubble. Shares of MBIA Inc. (NYSE:MBI) finished up 45% as B of A agreed to pay $1.7 billion to resolve the legal matter. Investors clearly considered the settlement a victory for MBIA Inc. (NYSE:MBI), and Bank of America Corp (NYSE:BAC) has taken several steps in recent months to escape the litigious hangover from its 2008 acquisition of mortgage lender Countrywide, having paid a total of $16.9 billion on five settlements in this year alone.

UnitedHealth Group Inc. (NYSE:UNH) shares were also looking brighter today, gaining 2.2% after JPMorgan Chase & Co. (NYSE:JPM) upgraded its rating on UnitedHealth Group Inc. (NYSE:UNH) and Humana to overweight, saying the insurance providers should be able to grow their Medicare Advantage enrollment in spite of potential reimbursement cuts. UnitedHealth Group Inc. (NYSE:UNH) shares have bounced up and down this year as the government has changed its expected cut to the program from 8% to 4%.

Finally, Merck & Co., Inc. (NYSE:MRK) was the worst performer on the Dow Jones Industrial Average (Dow Jones Indices:.DJI), falling 1.5%. There was no company-specific news out on the drugmaker today, but investors are continuing to flee the stock after a disappointing earnings report last week. Merck & Co., Inc. (NYSE:MRK)’s revenue dropped more than expected after going over the patent cliff on its Singulair asthma medication, and the market seems worried about where future revenue growth will come from.

The article Dow Pauses With 15,000 in Its Sights originally appeared on Fool.com and is written by Jeremy Bowman.

Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends UnitedHealth Group (NYSE:UNH) and owns shares of Bank of America.

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