It certainly has been a positive morning of trade so far for the Commonwealth Bank of Australia (ASX: CBA) share price.
At the time of writing the shares of Australia's biggest bank are up 1.5% to $69.63. In earlier trade they had climbed almost 2% to $69.90.
Why is the Commonwealth Bank of Australia share price charging higher?
It isn't just the Commonwealth Bank of Australia share price that is on the charge today. The shares of fellow banking giants Australia and New Zealand Banking Group (ASX: ANZ), National Australia Bank Ltd (ASX: NAB), and Westpac Banking Corp (ASX: WBC) are all up around 1.5% at present.
Investors have been buying shares after the Dow Jones Industrial Average posted its biggest single-day point gain ever.
The Dow Jones Industrial Average closed the day a massive 1,086.25 points or 5% higher thanks largely to strong rallies in retail, bank, and energy shares.
According to CNBC, investors fought to get hold of retail shares after data released by Mastercard Spending Pulse showed that retailers were having their best holiday season in six years. The Amazon share price was the standout performer in the sector with a whopping 9.5% gain.
The improving investor sentiment also led to a rebound in bank shares. The Bank of America share price climbed 6%, JP Morgan was 4% higher, and Citi climbed 4.5%. This appears to have rubbed off on Australia's banks today.
Should you buy the banks?
I think even after today's gains all of Australia's big four banks are worth considering as investments.
Not only are they trading on lower than average multiples, they offer some of the most generous dividend yields on the local market.
While my preference remains Westpac and ANZ Bank largely for valuation reasons, I feel all four have the potential to provide strong total returns next year.
