Financial Stocks Climb as Bitcoin Dips and Treasury Yields Rise
Financial stocks showed late-afternoon gains on Monday, with the NYSE Financial Index rising 0.8% and the State Street Financial Select Sector SPDR ETF (XLF) up 0.7%. Meanwhile, the Philadelphia Housing Index fell 0.7%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) declined 0.3%. Bitcoin (BTC-USD) dropped 1% to $85,673, while the yield on 10-year US Treasuries increased by 3.4 basis points to 5.31%.
Economic data released on Monday revealed mixed signals. The Institute for Supply Management's US services index fell to 54.9 in September from 55.4 in August, missing expectations of 55.0. Conversely, the S&P Global US services index improved to 58.8 in September from a flash reading of 58.7, up from 56.5 in August, exceeding expectations for no revision.
In corporate news, Citigroup (C) announced plans to shorten its investment banking analyst program from three years to two to retain junior bankers amid competition from private equity firms. Shares of Citigroup were fractionally lower. Allstate (ALL) was among six major insurers facing a Senate probe into claim payment practices, with shares up 0.4%. Intercontinental Exchange (ICE) launched new tanker and container freight futures and options, reporting a 33% rise in average daily volume across its freight markets this year. Shares of ICE rose 1.3%. Ares Management (ARES) is seeking a multimillion-pound upfront payment from BT Group in exchange for supporting a potential takeover of TalkTalk, with shares down 0.6%.