Bank Stocks Up a Bit; Wall St. Still Wary on Rates

Bank stocks tallied modest gains Monday as interest rate fears continued to keep most investors on the sidelines.

Among global banking companies Citigroup Inc. advanced 1.14%, to $44.1875 per share; J.P. Morgan & Co. moved up 0.4%, to $133.125, but Bank of New York Co. slipped 0.36%, to $34.6875.

Among the superregional banking companies, First Union Corp. moved up 2%, to $44.50 per share, and Wells Fargo & Co. gained 2.34%, to $40.9375.

The S&P bank index was up 1.47%, and Nasdaq banks posted a smaller, 0.8% gain. The Dow Jones industrial average rose 1.01%, to 10,909.38, and the broader-market S&P 500 was up 0.51%, to 1,334.52.

Monday's trading in bank stocks was muted in the absence of any fresh economic data that might shed light on the key issue hanging over the market: Will the Federal Reserve raise short-term interest rates on June 30?

Fed officials have made clear that they are increasingly concerned about the prospect of revived inflation. Last month they adopted a monetary policy bias toward higher rates.

The next inflation indicator, the import price index for May, is not due until Thursday.

It may show that the dramatic April run-up in oil prices has abated.

The producer price index for May, to be released Friday, may also offer relief from inflation fears-if wholesale price hikes settle back to a slower pace.

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