Shares of banks and other financial institutions ticked up after a mixed week of earnings results.
State Street shares rallied after the custodian bank eked out growth, despite the pressure of falling interest rates.
Rival Bank of New York Mellon, which also concentrates its business on safeguarding assets rather than lending or trading, remained under pressure, as its forecast of a slight increase in core expenses compared unfavorably with State Street's forecast of a slight decrease.
Recent economic data and credit-market trends bode favorably for the U.S. economy, according to one brokerage. "Recession risk models have continued to move lower as of the latest weekly update, driven by robust labor market conditions and supportive financial conditions in recent weeks," said analysts at brokerage Morgan Stanley, in a research note.
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(END) Dow Jones Newswires
January 17, 2020 16:36 ET (21:36 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.