U.S. financial stocks regained their positive footing on Wednesday after a surprisingly strong durable goods orders report and word that the Federal Reserve may begin buying Treasury securities.
The Financial Select Sector SPDR which tracks the financial stocks in the S&P 500, climbed almost 3%.
Demand for machinery and other capital goods rose in February, driving orders for durable goods up 3.4%, the Commerce Department reported Wednesday.
The unexpected rise in orders for big-ticket items marked the first increase after six straight monthly drops, an indication that domestic demand may have bottomed.
Economists surveyed by MarketWatch had been looking for total orders to fall 1.2%. See full story.
Top gainers included commercial real estate firm CB Richard Ellis , which rose more than 40% after is shares were upgraded by JMP Securities. Bank of America shares rose 7%, Fifth Third shares rose 7%, and XL Capital shares added 6%.
Among stocks in the news, Goldman Sachs ) shares rose about 1.5%.
The Industrial and Commercial Bank of China said on Wednesday that Goldman Sachs has committed to a new lockup agreement under which it will not sell 80% of its ICBC stock before April 10, 2010.
Previously, the ICBC shares held by Goldman Sachs would have become free for sale in equal installments on April 28, 2009 and October 20, 2009. On Tuesday, the Wall Street Journal reported that Goldman was considering the sale of up to 20% of its stake in the Chinese bank to raise money to repay a U.S. government investment in the company.
On Wednesday, ICBC said, "If Goldman Sachs pursues a sale of its ICBC shares that will be released from the existing lock-up on April 28, 2009, it will explore all potential methods of sale that would maximize value and minimize market impact, with a preference for a private sale to investors."
Shares of American Express rose about 2% after it said Wednesday that it might sell its own stake in ICBC after its lockup ends this year.
It reaffirmed its strategic cooperative relationship with the Industrial and Commercial Bank of China, but that it may sell its ICBC shareholding after the lockup period ends, depending on market conditions.
According to the companies' agreement, the lock-up period will expire in two equal installments on April 28 and Oct. 20. American Express said it would consider "all potential methods of sale that would maximize value and minimize market impact, with a preference for a private sale to investors." said it committed to a new lockup agreement under which it will not sell 80% of its ICBC stock before April 10, 2010.
