Banking stocks rose Thursday as upbeat manufacturing data suggested that the economy keeps improving.
The KBW Bank Index rose 0.17%, to 46.07.
Financial stocks gained with the broader markets after the Philadelphia Federal Reserve said manufacturing activity in the Philadelphia area has picked up more than expected in February. The news seemed to overshadow a report from the Labor Department showing that initial unemployment claims rose last week. Some economists had expected claims to fall.
The Dow Jones industrial average rose 0.81%, and the S&P 500 index 0.66%
In a move that could have deep implications for the banking sector, the Federal Reserve said after the markets had closed that it would raise the rate on loans from its discount window to 0.75%, from 0.5%, to encourage banks to tap the private market for short-term credit.
Bank of America Corp. rose 1.4%; JPMorgan Chase & Co., 0.92%; Wells Fargo & Co., 0.04%, and Citigroup Inc., 2 cents a share, to $3.43.
Among regional banking companies, U.S. Bancorp was up 0.76%; PNC Financial Services Group Inc., 0.04%; SunTrust Banks Inc., 0.09%; Marshall & Ilsley Corp., 0.76%, and M&T Bank Corp., 1.26%.
