Sector Snap: Regional bank stocks rise with market

Shares of regional banks rallied Friday along with the broader market, as Wall Street welcomed a sharp drop in oil prices.

KeyCorp was among the sector's biggest advancers, soaring $1.15, or 10.6 percent, to $11.96. Shares are down 54 percent this year.

It was reported that Merrill Lynch & Co. upgraded the stock to "Buy" from "Underperform." Merrill does not confirm rating changes on stocks.

Wall Street rebounded Friday, with the Dow Jones industrial average gaining more than 300 points, wiping out the previous session's losses. A strengthening dollar helped lower the price of a barrel of oil, which has pulled back about $30 from its high in mid-July and is seen as a sign of easing inflation pressures on consumers.

How other regional banks fared in afternoon trading:

First Horizon National Corp. jumped 73 cents, or 7.1 percent, to $11.02.

East West Bancorp Inc. advanced 68 cents, or 5.1 percent, to $14.14.

Regions Financial Corp. rose 24 cents, or 2.6 percent, to $9.71.

Fifth Third Bancorp gained 68 cents, or 4.5 percent, to $15.68.

Hudson City Bancorp Inc. spiked 72 cents, or 4 percent, to $18.68.