Financials Up Ahead of Earnings -- Financials Roundup

Shares of banks and other financial institutions ticked up as traders awaited earnings in the sector.

"The earnings statements become more important than ever, particularly for the financials -- who's more dependent on rates? So any insight they give us to rates will be important," said JJ Kinahan, chief executive of IG North America, the parent company of options firm tastytrade.

The banks will also provide a preview of emerging geographic and sector trends, Mr. Kinahan said. JPMorgan rose slightly ahead of its earnings report next week.

A drop in consumer-price inflation in December caused a modest rally in stocks, but a substantial move in the options institutional investors use to insure their portfolios, Mr. Kinahan said. The CBOE Volatility Index, or VIX, known as the "fear gauge," fell by 11%. "The VIX got absolutely slapped," said Mr. Kinahan. "It could be a sign of a mood change, certainly people are looking for moves to be less volatile."

 Write to Rob Curran at [e-mail] 

(END) Dow Jones Newswires

01-12-23 1733ET