November 14, 2016 12:00 AM

Bank stocks jump on election results

Bank stocks responded positively to the election results on the possibility that the new administration will repeal the Dodd-Frank Wall Street Reform and Consumer Protection Act, loosening regulations put on the industry following the financial crisis. The S&P 500 Diversified Bank index advanced 13.3%, while the S&P 500 index was ahead 3.8%. Wells Fargo led the index constituents, advancing 16% during the week.

Volume was also notably higher. The subindex saw average volume increase 2.5 times in the days following the election compared to its prior 30-day average. Volume of shares traded in J.P. Morgan and Comerica was 3.3 times and 3 times higher, respectively. Over that period, the average volume of the S&P 500 was 1.6 times above its 30-day average.