Bank stocks were mixed Tuesday in quiet session for the sector.
"As the yield curve flattens out, so does business," said Michael O'Boyle, a bank stock trader at First Horizon National Corp.'s FTN Midwest Research Securities Corp. in Nashville.
But Mr. O'Boyle said he thinks a rebound in mergers and acquisitions "is just around the corner," which would act as a catalyst for shares of regional banks.
Some thrifts continued to draw interest on Wall Street. The American Banker thrift index rose 0.5%, outperforming banks as well as the rest of the market. Most of the gains were from Washington Mutual Inc., though, which rose 1.9%.
The American Banker index of 225 banks fell 0.2% and its index of the top 50 banks rose 0.1%. The Standard & Poor's 500 rose 0.3%.
Aside from thrifts, shares of some consumer finance companies were among the best performers.
Metris Cos. Inc. of Minnetonka, Minn., and Providian Financial Corp. of San Francisco rose 6.7% and 2.7%, respectively. Metris released its January credit quality data Monday after the market closed, and Providian did so Tuesday. Both pleased investors.
MBNA Corp.'s data, on the other hand, disappointed. Its stock slid 3% in early trading after the Wilmington, Del., company released January numbers on Tuesday morning. But it recovered somewhat and closed down 0.4%.
After the market closed, Commerce Bancorp Inc. of Cherry Hill, N.J., declared a two-for-one common stock split to take effect March 7. Commerce shares fell 0.1%, to close at $57.68.
