Bear Stearns' (BSC) profit rose 81% on strength in its capital markets business. The firm, the third of three Wall Street firms to report this week, said it earned $539.3 million compared to $298.1 million a year ago. The firm had revenue of $2.50 billion in the latest quarter, compared to $1.87 billion a year ago.
Legg Mason (LM) was raised to outperform by Friedman Billings Ramsey analyst Matt Snowling. A recent decline in the shares more than accounts for the risks involved in integrating acquisitions, the analyst said, after meeting with the asset management company's executives.
Charles Schwab (SCHW) said that total client assets fell 2% from April as U.S. and international stock markets fell sharply during the last two three weeks of the month. Total client assets were $1.27 trillion as of month-end May, down from April, but up 17% from May 2005.