J.P. Morgan & Co. said Tuesday it would seek $300 million to $500 million in annual cost savings over the next two years and use the proceeds to invest in key growth businesses.

Bucking a downward trend for bank stocks, shares of $272 billion-asset Morgan rallied on the announcement, made at an afternoon analysts' meeting. After trading as low as $131.50 earlier in the day, Morgan closed at $134.5625, up 37.5 cents.

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