By Matthew Craft
AP Business Writer
NEW YORK (AP) — Bank of America led a rally in big-bank stocks in mostly quiet trading on Monday. Stock indexes ended little changed following a record-setting run last week.
News that Bank of America and MBIA, a bond-insurance company, had reached a settlement over a long-running dispute propelled both companies’ stocks up. BofA will pay $1.7 billion to MBIA and extend the troubled company a credit line.
MBIA soared 45 percent, or $4.46, to $14.29. Bank of America gained 5 percent, or 64 cents, to $12.88, making it the leading company in the Dow Jones industrial average.
The Dow slipped 5.07 points to close at 14,968.89. The Standard & Poor’s 500 index crept up 3.08 points to 1,617.50, a gain of 0.2 percent.
Six of the 10 industry groups in the S&P 500 rose, with financial companies in the lead.
No major economic reports came out Monday, but a handful of companies reported their quarterly results. Tyson Foods, the nation’s largest meat-processing company, fell 3 percent, the biggest drop in the Standard & Poor’s 500 index, after saying its net income sank as costs for chicken feed rose. Tyson’s stock lost 83 cents to $24.10.
Companies have reported solid quarterly profits so far this earnings season. Seven of every 10 big companies in the S&P 500 have beat the earnings estimates of financial analysts, according to S&P Capital IQ. But revenue has looked weak: six of 10 have missed revenue forecasts.
The stock market cleared new milestones Friday after the government reported that employers added more workers to their payrolls in recent months. The unemployment rate fell to 7.5 percent, the lowest level in four years.
That news sent the Dow through the 15,000 mark for the first time, while the S&P 500 closed above 1,600, another first.
In Monday trading, the Nasdaq composite rose 14.34 points to 3,392.97, an increase of 0.4 percent.