Banking stocks rose Monday as some analyst ratings changes on large banks underscored the sector's strengths and challenges.
The KBW Bank Index rose 1.13%.
Citigroup Inc. led the group higher after Richard Bove of Rochale Securities said the company has the potential to be a "moneymaking machine" as the economy rebounds and its losses ease. He upgraded his rating to "buy" from "neutral," sending Citi's shares up 16 cents — or 4.04% — to $4.06.
SunTrust Banks Inc., meanwhile, moved in the opposite direction after Stephen Moss of Janney Montgomery Scott downgraded his rating to "neutral" from "buy," saying SunTrust will likely book more losses through 2010 as it works through its residential loan problems.
The broader markets, meanwhile, rose as the fate of the health-care reform bill was cleared up when it passed the House.
The Dow Jones industrial average rose 0.41% and the Standard & Poor's 500 index rose 0.51%.
Bank of America Corp. rose 0.83%; JPMorgan Chase & Co., 0.6%; and Wells Fargo & Co., 0.1%.
BB&T Corp. rose 0.44%; Capital One Financial Corp., 2.11%; Fifth Third Bancorp, 0.98%; and U.S. Bancorp, 0.31%.