Investors boost stock of a leaner Bank of America

Bank of America is back to basics – slimmed down, stripped of its swagger and no longer the biggest bank in the country. And investors, after pummeling the company for two years, finally like what they see.

The stock jumped 2.4 percent Thursday after Bank of America reported that it made $2 billion from October through December, reversing a $1.2 billion loss from a year earlier. The stock is up 25 percent this year.

Almost none of the profit came from improvements in Bank of America’s basic businesses. In fact, it lost money in the fourth quarter in real estate and investment banking. But the bank raised $2.9 billion by selling its stake in China Construction Bank and $2.4 billion more by selling debt and issuing common stock to replace its higher-cost preferred stock, which paid out annual dividends as high as 8 percent.

U. S. stock markets extending their advance

U.S. stocks bumped to a higher close Thursday, extending their 2012 advance.

Gains, however, were limited after the S&P 500 clocked its best start to the year since 1987 and with plenty of weak signs in earnings reports.

The Dow Jones industrial average rose 45.03 points, or 0.4 percent, to 12,623.98, its third straight day of gains and its highest close since July 22. It’s up 3.3 percent for the year. The Nasdaq composite index added 18.62 points, or 0.7 percent, to 2,788.33, lifting its year-to-date gains to 7 percent. The S&P 500 index gained 6.46 points, or 0.5 percent, to 1,314.5.

Europe debt worries recede as France, Spain pass test

France and Spain on Thursday sailed through their first bond market tests since Standard & Poor’s downgraded their credit ratings last week, a sign that politicians and central bankers have at least temporarily stemmed the spread of Europe’s debt crisis.

Worries about the 17-nation eurozone have receded since the start of the year, with stocks rallying consistently and bond yields – the rate countries pay to borrow – sliding.

Analysts warn, however, that those gains may simply be riding an absence of bad news – a looming recession could hinder efforts to slash deficits while Greece depends on a deal with banks to avoid a disastrous default this spring.

Google earnings come in way under predictions

Google’s moneymaking machine misfired badly in the fourth quarter as its advertising prices fell during the holiday marketing season.

The results announced Thursday fell way below the lofty expectations of stock market analysts and Google’s shares plunged more than 9 percent after the numbers were released.

Google Inc. earned $2.7 billion, or $8.22 per share, in October to December, just 6 percent more than the $2.5 billion, or $7.81 per share, it earned a year earlier.

Major file-sharing site target of shut-down action

The Department of Justice announced Thursday that it has conducted a major action to shut down MegaUpload, a popular file-sharing site widely used for free downloads of movies and television shows.

After receiving indictments from a grand jury in Virginia for racketeering conspiracy, conspiracy to commit copyright infringement and other charges on Jan. 5, federal authorities on Thursday arrested four people and executed more than 20 search warrants in the U.S. and eight foreign countries, seizing 18 domain names and an estimated $50 million in assets, including servers run in Virginia and Washington, D.C.

MegaUpload is a “digital locker” that allows users to store files that can then be streamed or downloaded by others.

— From news service reports