STI - Why Shares of BB&T and SunTrust Traded Up in September
Shares of merger partners BB&T (NYSE: BBT) and SunTrust Banks (NYSE: STI) gained 12% and 11.9% in September, respectively, according to data provided by S&P Global Market Intelligence. The banks were helped by a positive turn in economic data that helped ease investor fears about financial stocks, and an optimistic outlook from BB&T's CEO.
BB&T and SunTrust shares have largely traded in tandem since February, when the companies announced plans to combine to become what would be the sixth-largest bank in the U.S.
During the months that followed the deal announcement, bank stocks have frequently come under pressure due to fears the U.S. could be headed toward a recession. That's what happened in August, when financial stocks reacted negatively to an inverted yield curve.