Bank stocks fell Wednesday, but the broad market ended the day up.
"We were busy, particularly with buying in the Northeast," said Michael O'Boyle, a bank-stock trader at First Tennessee National Corp.'s FTN Financial Securities Corp. in Nashville.
North Fork Bancorp Inc.'s announcement Tuesday that it would buy Trust Co. of New Jersey was a catalyst for speculation about further consolidation in the region, Mr. O'Boyle said.
TrustCo Bank Corp. of Glenville, N.Y., was among the top gainers, rising 3.3%.
But profit-taking and insider sales also affected banking stocks, Mr. O'Boyle said.
The American Banker index of 225 banks fell 0.2%, and the Standard & Poor's 500 rose 0.1%. The American Stock Exchange's brokerage index posted the biggest jump, closing up 0.5%, though the components were mixed. Lehman Brothers and Bear Stearns Cos. Inc. reported higher earnings, but Lehman fell 1.6%, while Bear Stearns rose 2.8%.
Online traders posted some of the biggest gains. E-Trade Group Inc. of Menlo Park, Calif., rose 3% after raising its guidance for this year and issuing guidance for next year.
