Financial stocks are on their longest winning streak since July in part thanks to results from Bank of America. Bobbi Rebell reports.
Wall Street edged mostly higher in a tepid rally driven by earnings. Financials were among the leaders for the second straight session. Quarterly profit fell at Bank of America and Wells Fargo. Both banks set aside more money to cover bad loans related to energy. BofA's bottom line met analysts expectations; Wells' results topped forecasts. But Kristina Hooper of Allianz Global Investors is cautious about bank stocks. SOUNDBITE: KRISTINA HOOPER, U.S. INVESTMENT STRATEGIST, ALLIANZ GLOBAL INVESTORS, (ENGLISH) SPEAKING: "The outlook doesn't look good for banks right now. What we really want to see is revenue growth, not earnings growth." Banks didn't get great news on the prospects for interest rates. Consumer prices barely rose in March, suggesting little urgency for the Fed to raise rates soon. Separately, jobless benefit claims fell last week Disk drive makers got hit hard a day after Seagate Technology slashed its revenue outlook, citing weaker demand from China for its storage devices. Microsoft shares holding steady after it sued the U.S. government. The software giant contends the government violates the Constitution by preventing it from notifying its customers about government requests for their data. Chipotle rising after JPMorgan upgraded the stock to "overweight" from "neutral." The brokerage was upbeat about the burrito chain's prospects for comparable sales. In Europe, stocks inched higher led by a rally in healthcare stocks.