Stocks closed Wednesday mixed, one day after the market had its biggest gain of the year. Citigroup fell after failing to convince regulators it was healthy enough to raise its dividend.
On Tuesday, a powerful rally in bank stocks pushed the Dow to its highest close since the last day of 2007. The Federal Reserve said 15 of the 19 major banks it surveyed passed a so-called stress test to see how they would stand up in a financial crisis worse than what happened in 2008.
Citigroup, among the four that weren't deemed strong enough to raise their dividends or make other distributions to shareholders, fell 4 percent in morning trading.
Other banks that passed the Fed's test mostly rose. Regions Financial rose 6.6 percent after the bank said it would sell $900 million in stock to repay some of the money it received as part of the 2008 bank bailout. Bank of America rose 2.6 percent and Zions Bancorporation rose 7.3 percent, the most of any stock in the S&P 500 index.
The Associated Press contributed to this report.
