Bank stocks lead market higher after many win Fed clearance to raise dividends; Intel slumps

Markets Associated Press

Financial stocks are leading U.S. market indexes higher a day after a number of banks announced dividend increases and stock buybacks.

Continue Reading Below

Morgan Stanley gained 4 percent in midday trading Thursday. The bank raised its dividend and announced a share buyback after getting permission to do so from the Federal Reserve. Other banks also rose.

The Dow Jones industrial average was up 190 points, or 1.1 percent, to 17,827 as of 11:45 am. Eastern time.

The Standard & Poor's 500 index rose 19 points, or 0.9 percent, to 2,059. The Nasdaq composite rose 26 points, or 0.5 percent, to 4,875.

Intel fell 4 percent after slashing its revenue forecast.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.08 percent.