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LATE SURGE LIFTS STOCKS
Despite reports that stress test results, released Thursday, will show banks need to raise billions more -- both the Dow [ .DJIA 10741.98 
-37.19 (-0.34%) ] and the S&P [ .SPX 1159.90 -5.93 (-0.51%) ] closed positive for the day.
In fact, the shortfalls are said to be much larger than expected, but that didn’t seem to bother investors. Shares of major banks advanced, sending the KBW Bank Index [ BKX 51.13 -0.5 (-0.97%) ] surging.
Among banks expected to need capital, Bank of America [ BAC 16.82 -0.26 (-1.52%) ], Citigroup [ C 3.90 -0.12 (-2.99%) ] and Wells Fargo [ WFC 30.38 
+0.09 (+0.30%) ] all soared for the day.
Although it seems counterintuitive, "the market likes the certainty of putting numbers on the worst-case scenarios of how much capital these banks need," explains Chris Armbruster, an analyst at Al Frank Asset Management.
Strategy Session with the Fast Money Traders
It’s a head scratcher, muses Karen Finerman. If we had seen this very same news a few months ago it would have sent the market into a tailspin.
Sheila Bair gave traders their playbook, counters Pete Najarian. She said the stress test results would give us confidence in the banks and that’s exactly what’s happening.
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