Why Charles Schwab Stock Topped the Market Today
Wednesday was, if not the most important day for certain banks and financial services providers in the U.S., among the top five. That's because it's when the results of the Federal Reserve's stress tests were released.
Happily for investors with assets in those sectors, all 23 institutions involved in this year's tests passed. Among these was veteran securities brokerage Charles Schwab (NYSE: SCHW), and the market rewarded the company by trading its stock more than 2% higher on Thursday. This handily beat the 0.5% rise of the S&P 500 index.
Among other metrics, the Fed gauges banks' and financial services companies' capital levels in addition to their leverage. It then judges whether such institutions would be able to weather several different degrees of sudden and sharp economic decline. Schwab, like the 22 other companies undergoing the tests, made the grade.
Source Fool.com
