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US stocks bounce back, buck global market trend

Matthew Craft, AP Business Writer

FILE- In this Thursday, June 21, 2012 file photo, a trader works on the floor of the New York Stock Exchange in New York. Wall Street appeared headed for a higher opening, Friday June 22, 2012 a day after the Dow sustained its second-worst loss of the year. Dow Jones industrial futures rose 0.4 percent to 12,546 and S&P 500 futures added 0.4 percent to 1,323.50. (AP Photo/Mary Altaffer, File)

NEW YORK (AP) -- Stocks are bouncing back in early trading, a day after suffering their second-worst loss this year. The unlikely leaders: banks.

JPMorgan Chase and Bank of America are among the top stocks in the Dow Jones industrial average on Friday. The gains come even after Moody's cut the credit ratings on 15 large banks after the market closed Thursday.

The Dow is up 56 points to 12,630 an hour after the opening bell. That's a rise of 0.4 percent.

Moody's had been warning that it would make the move since earlier this year. Analysts at KBW said the step by Moody's removes uncertainty had been hanging over the banks for months.

The KBW analysts called Morgan Stanley "the clear winner" and said JPMorgan took second place. Some analysts expected the rating agency to make deeper cuts to their credit scores.

Morgan Stanley rose 2.6 percent in early trading, gaining 35 cents to $14.32.

JPMorgan Chase jumped 2.5 percent, adding 88 cents to $36.38. Bank of America rose 1 percent, or 8 cents, to $7.89.

The Standard & Poor's 500 index rose 6 points to 1,331 and the Nasdaq composite index climbed 16 points to 2,874. The early gains turned the Nasdaq positive for the week. The other two major indexes are still on course to end the week lower.

Bank stocks were the strongest industry group among the 10 tracked by the S&P 500 index. Only two sectors fell, industrial and materials companies.

European and Asian stocks fell again on Friday.

Among other stocks making big moves:

— Truck leasing company Ryder System plunged 11 percent, the worst decline in the S&P 500 index. The Miami-based company cut its earnings forecast for the second quarter and full year, blaming weak demand for commercial truck rentals and unusually high costs for medical benefits. The stock lost $4.58 to $36.17.

— Darden Restaurants lost 2.2 percent after the restaurant operater said sales fell nearly 4 percent its Red Lobster locations and 2 percent at Olive Garden, as an earlier Lenten season and Easter holiday affected the quarter. Darden also said national advertising for both chains was "less effective than anticipated." The stock fell 97 cents to $49.42.