Shares of banks and other financial institutions rose as trends in credit- and deal markets stoked optimism about bank earnings later in the week.
The recent increase in benchmark long-term interest rates will likely bolster net interest margins for conventional banks, said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.
Among commercial and consumer-focused banks, JPMorgan Chase, Wells Fargo and U.S. Bancorp rose.
Investment banks such as Goldman Sachs Group and Morgan Stanley will likely benefit from a wave of dealmaking, Joyce said. Earnings reports will give us a view into how the sector is "doing at the banks' level, but also gives us an idea of how the economy's doing," said Joyce.
Mercury General, an insurer whose business is concentrated in California, fell by more than 5% compounding losses as wild-fires continued to rage around Los Angeles.
Howard Hughes Holdings rallied after reports that billionaire Bill Ackman may seek to buy out the part of the real-estate investment firm his Pershing Square firm doesn't already own, and form an investment vehicle that would function like Warren Buffett's Berkshire Hathaway.
The Federal Trade Commission is preparing a lawsuit against Greystar Real Estate Partners, the country's largest apartment landlord, alleging that the firm charged tenants hidden fees.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-13-25 1709ET
