Big Banks Dip Despite Rising Home Sales (Volcker Update)

BY Philip van Doorn|12/30/13 - 07:47 PM EST

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NEW YORK (TheStreet) -- Many large-cap bank stocks pulled back on Monday,
despite some good economic news.

PNC Financial Services Group  (PNC_) led the sector down, with shares sliding
0.9% to close at $77.51. Bank of America  (BAC_) was down 0.8% to close at $15.54 and Morgan Stanley (MS_) was down 0.7% to close at $30.85.

The broad indices ended mixed, with one more day to cap off the best year for the
S&P 500 since 1997.  The index was down very slightly on Monday and has risen 
29% this year, following a 13% gain during 2012.

The KBW Bank Index (I:BKX) on Monday pulled back 0.2% to 68.97, with the 24
 index components split between winners and losers.  But the banks are looking at 
another banner year, with the index rising 34%, after a gain of 30% during 2012.

In economic news on Monday, the National Association of Realtors said pending 
sales of previously owned homes in the U.S. rose 0.2% during November to a
 Home Sales Index reading of 102.1, from a downwardly revised reading of 101.5 for
 October. Pending sales during November were down 1.6% from a year earlier.
 Economists polled by Reuters on average estimated the November figure would 
rise by 1.5%.

While the pending home sales figure for November was disappointing to many 
economists, this was the first increase in six months.  

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