Stocks finished higher today but well off their highs as financial stocks fell back because of the uncertainty raised by problems with home foreclosures.
Attorneys general in all 50 states have joined to start a probe into foreclosure practices. The question is whether the hurry to get foreclosures finished has meant lawyers and others have failed to follow state laws properly.
The financial pullback substantially cut into gains for the major indexes. JPMorgan Chase (JPM) had a good report, but shares fell 1.3% to $39.86 in part because it increased reserves for litigation costs over foreclosures. The banking giant will review the paperwork associated with 115,000 mortgages it owns.
At the same time, Intel (INTC) which also reported better-than-expected earnings on Tuesday, also fell.
Still, the Dow Jones industrials ($INDU) closed up 76 points, or 0.7%, to 11,096; the blue chips had been up as many as 135 points. The Standard & Poor's 500 Index ($INX) was up 8 points, 0.7%, to 1,178, and the Nasdaq Composite Index ($COMPX) was up 23 points, or 1%, to 2,441. (more)
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