After three days of triple-digit losses, the Dow Jones Industrial Average rebounded powerfully Wednesday morning, up more than 150 points to over 11,292, gaining better than 1.35%. Whereas no Dow stocks were up in early trading Tuesday, no Dow stocks were down in early trading Wednesday on hopes of a European debt resolution and in anticipation of President Barack Obama’s speech on jobs in the United States.
Bank of America, (NYSE:BAC) the worst-performing stock on the Dow for 2011 was a leader this morning, up more than 30 cents and 3% to over $7.20. Senior management changes met with the approval of Wall Street. Gone are Sallie Krawcheck, former head of wealth management; Joe Price, former head of consumer banking; and Barbara Desoer, former mortgage chief. Incoming as co-chief operating officers are David Darnell and Thomas Montag. Both Krawcheck and Price were hired by Ken Lewis, the former CEO of Bank of America.
Hopes for a global economic recovery had Alcoa (NYSE:AA) up more than 3% to over $12.15 per share, picking up more than 40 cents in early action. Alcoa is up more than 9% for the week but down more than 24% for the quarter. With a beta of 2.1, Alcoa is more than twice as volatile as the market.
Home Depot (NYSE:HD) was trading higher by about 1.5%, gaining about 50 cents per share to around $32.50. Housing prices have risen for four months, and Home Deport reported strong earnings while its main competitor, Lowe’s, did not. Home Depot is up more than 5% for the month and 9% for the year.
Global growth hopes also had Wall Street happy with Big Oil as Chevron (NYSE:CVX) rose about $3 to around $98.50, a gain of about 3%. A Wall Street Journal article this morning reported that Chevron made a major oil discovery in the Gulf of Mexico. While Chevron is up around 30% for the year, it is down more than 3% for the week.
Soaring to more than $20 per share was Intel (NASDAQ:INTC), increasing by about 50 cents, or 2.7%. The tech sector was up today, led by Yahoo, which replaced its CEO. Intel was upgraded by Barclays Capital and Standpoint Research in August. Intel is down more than 4% for the week but up more than 11% for the year.
Travelers (NYSE:TRV) was up about $1, or around 2%, to around $49.45. The financial sector, the worst-performing group in the Dow for 2011, was up this morning. Travelers is down more than 4% for the week, 7% for the month and 20% for the quarter. With a beta of 0.64, a dividend of 3.38% and institutional ownership of 85.54%, Travelers is much less volatile than the market.
Jonathan Yates does not own any of the stocks mentioned in this article.