General Electric Company (GE) and Bank of America Corp (BAC) Surge as the Dow Rises

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Stocks are kicking off the short week on a good note, and the Dow Jones Industrial Average is back above 14,000 in today’s rally. The Dow has recorded gains of 55 points, or 0.4%, as of 2:15 p.m. EST. Most members of the index are in the green today, with numerous stocks hitting gains of more than 1%. Let’s go around the Dow and see why the biggest movers up are reacting.

Moving on up…and down
General Electric Company (GE)General Electric Company (NYSE:GE) ranks among Dow leaders with gains of 1.9%. The big conglomerate announced earlier today that it would spend more than $300 million investing in Indonesian health care, deep-sea drilling, and forming partnerships with local companies as part of a push into the emerging market. Indonesia and its more than 230 million people offer a bountiful, growing market for the company, and GE’s stock has once again hit a new 52-week high on the news.

Bank of America Corp (NYSE:BAC) is also hitting stride today, leading all Dow members up with gains of 2.3%. The stock’s hovering just below a new 52-week high, although 2013 hasn’t so far lived up to 2012. Last year’s top Dow stock has stayed flat to kick off the new year, but it has still picked up more than 26% in the past three months. The bank also got a lift from the New York Fed in a move that only recently came to light: The Federal Reserve cleared the company of liability on some mortgage-backed securities it sold to recovering insurer American International Group, Inc. (NYSE:AIG) in part of a lawsuit last summer. It’s good for B of A that AIG’s potential $7 billion suit was cleared — and not so good for AIG shareholders.

Speaking of downsides, some stocks on the Dow are slipping today. UnitedHealth Group, Inc. (NYSE:UNH) is taking a shellacking, with shares down 1.9%. Rival health insurer Humana Inc. (NYSE:HUM) is taking the entire industry down after its earnings sparked a panic. The company took a hit from proposed cuts to reimbursement rates from Medicare Advantage, as the Centers for Medicare and Medicaid announced rates below what Humana expected. For health care insurers looking to find new ways to grow their bottom lines as 2014 approaches — when millions of Americans will be required to purchase insurance or face a penalty — the proposed Medicare rate change was disappointing news.

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