Shares of Morgan Stanley jumped more than 4% early Monday and closed up 2.1% after the company said its embattled chairman and chief executive, Philip J. Purcell, would retire within nine months.
The company also issued an earnings warning and said second-quarter earnings would be 15% to 20% below the year-earlier $1.10 per share.
National City Corp. of Cleveland fell 0.4% after release of a midquarter financial update in which is said net interest income will be "slightly" higher in the second quarter than the first and core banking fees "are expected to be up modestly relative to the first quarter."
The American Banker index of 225 banking stocks gained 0.19%, and the Standard & Poor's 500 gained 0.23%.
Investors are in for full plate of key economic data this week. The May producer price index and retail sales reports are to come out Tuesday, the May consumer price index Wednesday, and May housing starts Thursday.
Shares of Countrywide Financial Corp. gained 0.6% Monday, and those of Wells Fargo & Co. Inc. fell 0.3%, after Morgan Stanley analysts raised earnings estimates on both companies. Kenneth Posner raised his 2005 estimate for Countrywide by 4%, to $4.34, and his 2006 estimate by 9%, to $4.61; Betsy Graseck raised her 2005 and 2006 estimates for Wells Fargo by 1%, to $4.61 and $5.20, respectively.
Two Indiana banks were among the day's notable gainers: Integra Bank Corp. of Evansville, up 4.4%, and First Indiana Corp. of Indianapolis, up 3.3%. Shares of Anchor BanCorp Wisconsin Inc. of Madison rose 3.6%.
Credit Acceptance Corp. of Southfield, Mich., whose stock had risen 6% on Friday, fell 8.5% on Monday. The day's biggest losers also included Republic Bancorp Inc. of Louisville, off 6.2%, and Washington Trust Co. of Westerly, R.I., off 5.4%.
