New York: US stocks clawed back some early loses to finish mixed on Monday, with solid bank earnings largely trumping uncertainty caused by fraud charges against top Wall Street bank Goldman Sachs.
The Dow Jones Industrial Average closed up 73.39 points (0.67%) to 11,092.05 by the close.
The climb came after the index tumbled more than 100 points on Friday following the announcement by the Securities and Exchange Commission (SEC) of civil fraud charges against Goldman.
The tech-rich Nasdaq composite did not manage to make it out of the red, declining 1.15 points (0.05%) to 2,480.11. The broad-market Standard & Poor’s 500 index gained 5.39 points (0.45%) finishing at 1,197.52.
After the tumult of the Goldman Sachs charges the markets got some succor when US banking giant Citigroup posted a profit of $4.4 billion in the first quarter of this year - its best earnings since early 2007.
“Citigroup recouped all of its losses from the prior session with a seven % surge,” said analysts at Briefing.com.
Following on from blockbuster results reported by Citi rivals last week, the New York-based bank returned to the black after losing $7.6 billion in the last quarter of 2009.
Financial stocks listed on the Dow were up almost a% across the sector, despite a one%-plus drop in JPMorgan shares.
IBM also led the charge, the US computer giant lifted its earnings outlook for the year after posting better-than-expected first quarter results.
The Armonk, New York-based company said net profit grew 13% in the first quarter over a year ago to 2.6 billion dollars. Its shares were up more than one and a half%.
Among other rallying stocks was telecoms firm AT&T, up 1.74%.
The bond market fell slightly. The yield of the 10-year Treasury bond rose to 3.797% from 3.770% Friday and that of the 30-year bond rose to 4.694% from 4.671%. Bond yields and prices move in opposite