U.S. stocks succeeded in making late recovery after falling in initial trading on good reports on Bank of America Corp. and Yahoo Inc.
Stock prices began to reduce their losses during the final hour of the session as Yahoo Inc. as well as Bank of America Corp. both achieved a quick reversal and ended higher. The Dow Jones Industrial Average closed higher by 0.03% or 4.16 points at 12,107.74 after dropping by 104 points and remaining in the negative territory for most part of the session. The S&P 500 closed up by 0.2% or 2.42 points at 1,243.72. Technology was the sole sector in index’s 10 sectors to close lower.
Bank of America Corp. closed 1.2% higher following announcement by the Justice Department about settlement with Bank of America over alleged biased lending methods by Countrywide Financial Corp. It is also reported that Yahoo is in the process of discussion on a plan to reduce its share in Alibaba Group Holding Ltd. from 40% to 15%. Shares of Yahoo closed 5.8% higher.
In addition to Yahoo news and bank settlement, the sentiment was also supported by some technical actions.
The Nasdaq Composite Index dropped by 1% or 25.76 points to 2,577.97.