16 Oct 2010

US stocks up, but banks down

11:46 am on 16 October 2010

Stocks in the United States mostly rose after the head of the United States Federal Reserve indicated the bank will introduce additional measures to stimulate the economy.

Fed chairman Ben Bernanke said high unemployment and low inflation continue to pose a risk to the economy.

The Dow Jones industrial average was down 31.79 points (0.29%) to 11,062.78 points, while the SP 500 index was up 2.38 points (0.20%) at 1,176.19 points.

The Nasdaq composite index rose 33.39 points (1.37%) to 2,468.77.

However, banks again saw a slump in their shares due to a furore over mishandled home foreclosures.

Bank of America, Wells Fargo and JPMorgan Chase Citigroup were the worst affected.