Editor’s note: This article was published yesterday, after market close. Related tickers, Bank of America Corp (NYSE:BAC), American International Group Inc (NYSE:AIG)
First-quarter earnings reports are finally here, but before the first release of the official earnings season came this afternoon, the Dow Jones Industrials managed to start things off on an optimistic note, rising 48 points even as many analysts fear that any slowdown in earnings could trigger a reversal in the stock market’s impressive gains over the past four years. Broader market measures rose more substantially, with gains of more than half a percent for the S&P 500 and Nasdaq Composite.
The biggest percentage gainer in the Dow was Bank of America Corp (NYSE:BAC), which climbed 2%. Despite having acquired a terrible image from its needing bailout support and its attempts to raise income in the aftermath of the financial crisis, Bank of America Corp (NYSE:BAC) has been reworking its image, and Fool contributor Amanda Alix points to “super-branches” with luxury accoutrements as well as more advanced ATM technology as evidence that the bank has learned from its past missteps.
Elsewhere in the financial sector, American International Group Inc (NYSE:AIG) climbed nearly 4% to a 52-week high as the company seeks to block a potential shareholder derivative lawsuit that former chairman and CEO Hank Greenberg wants to file against the U.S. government.
Greenberg seeks to argue that the terms of the government’s bailout of the insurance company were unfair to American International Group Inc (NYSE:AIG), but AIG correctly anticipates a huge potential outcry from outraged taxpayers if such a suit were to go forward.
Meanwhile, AIG also completed the sale of its American Fuji Fire and Marine subsidiary to White Mountains Insurance, with the deal that was announced last year having had to wait for regulatory approval before proceeding. American International Group Inc (NYSE:AIG) has done a good job of recovering from the financial crisis by concentrating on its core business, and investors who got in after the financial meltdown have reaped the benefits.
Finally, Weatherford International Ltd (NYSE:WFT) rose nearly 4% on the heels of General Electric Company (NYSE:GE)‘s deal to buy Lufkin Industries announced this morning. As a fellow oil-services provider, Weatherford is rising on speculation that merger and acquisition activity in the space could rise as a result of the General Electric Company (NYSE:GE) acquisition. Yet GE almost certainly wouldn’t be interested after having bought Lufkin, and with Weatherford International Ltd (NYSE:WFT)’s market cap of nearly $10 billion, it would take a similarly big buyer to pull off a buyout of that size. It’s hard to see Weatherford as an acquisition candidate even after the Lufkin buyout.
The article How Bank of America Helped Send the Dow Higher originally appeared on Fool.com.
Fool contributor Dan Caplinger owns warrants on AIG and Bank of America Corp (NYSE:BAC). You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends American International Group Inc (NYSE:AIG); owns shares of AIG, Bank of America, and General Electric; and is long January 2014 $25 calls on AIG.
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