Banking stocks rose with the broader markets on the release of positive economic data regarding personal income and spending.
The KBW Bank Index rose 1.42%, to 47.20.
Stocks rose across the board after the Commerce Department said personal income and spending continued to grow in December while personal savings also mounted. Investors greeted the report as a sign that the economy is moving in the right direction.
The Standard & Poor's 500 index rose 1.43% and the Dow Jones industrial average rose 1.17%.
Large banks with lots of consumer exposure rose.
Bank of America Corp. rose 1.58%; Wells Fargo & Co., 1.76%; JPMorgan Chase & Co., 1.77%; and Citigroup Inc. 2 cents, to $3.34.
In other news, multiple media outlets reported that JPMorgan Chase was reconsidering plans to buy the North American operations of Sempra Commodities LLC in light of the Obama administration's proposal to curb proprietary trading at banks.
Also, the Federal Reserve said banks have not yet loosened the flow of credit to consumers and businesses even though they are not tightening credit standards as severely as they were up to two years ago.
A number of regional banks had a good day.
Regions Financial Corp. rose 4.57%; Zions Bancorp., 5.01%; BB&T Corp., 1.26%; KeyCorp, 2.23%; and SunTrust Banks Inc., 0.7%.
