Shares of GE (GE) Surge More Than 7%

Shares of General Electric (NYSE: GE) are bouncing nicely this morning despite no company specific news. The stock is currently up 7% to $9.64. Notably, since hitting a fresh 52-week low (at $8.43) on Tuesday, GE's stock price has jumped by more than 13%.

Traders may be buying the stock for several reasons today.

First, mention of the up-tick rule by Fed Chairman Bernanke in his testimony yesterday seems to be sparking rumors that the rule could be reinstated. Short sellers may be covering their downside bets in light of this, sending GE's stock higher as shares are bought back.

Next, following news on Monday that JPMorgan (NYSE: JPM) cut its quarterly dividend from $0.38 to $0.05, that stock has gone straight up. As the move will free up about $5 billion in equity per year for the bank, traders are likely viewing the dividend cut as a positive. This has been one of thee major factors driving shares of GE down over the last month or two, but it now appears that trader sentiment has shifted as a dividend cut is likely already priced in at current levels.

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