30 Oct

Financial Stocks Are Making Steady Gains

WRITTEN BY Peter Barnes

Markets continued to edge higher

The stock markets continued to reach new highs driven by gains in financial and technology stocks. The better-than-expected 3Q17 GDP growth rate, higher earnings from technology companies, and tax cut hopes are providing a tremendous boost to equity markets. The S&P 500 (SPX-INDEX) (SPY) rose 0.23% last week and closed at 2,581—a lifetime high. The Dow Jones Industrial Average (DJI-INDEX) (DIA) rose 0.45% and closed at 23,434, while the NASDAQ Composite (COMP-INDEX) reported the highest gains of 1.1%.

Financial Stocks Are Making Steady Gains

Financial index is progressing well

The 0.56% gain in the S&P 500 Financials Index was mainly driven by Bank of America (BAC) and JPMorgan Chase (JPM), which rose 2.32% and 2.27%, respectively. The other major gainers in the financial sector were Wells Fargo (WFC), Morgan Stanley (MS), and U.S. Bancorp (USB), which rose 1.73%, 0.95%, and 0.65%, respectively. Goldman Sachs (GS) lost 1.23%. It was the only major financial stock that provided negative returns during the week.

The Financial Select Sector SPDR ETF (XLF) rose 0.53%, while the Vanguard Financials ETF (VFH) rose 0.55%. The S&P Insurance Select Industry Index (SPSIINS) fell 0.46%.

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