Bank stocks rallied Friday, with the sector set to post gains every day this week, boosted by the continued rise in Treasury yields. The SPDR Financial Select Sector ETF (XLF) rose 0.7%, and has rallied 3.8% amid a 5-day win streak, and the SPDR S&P Bank ETF (KBE) climbed 0.8% and has run up 7.4% this week. Among the more active bank stocks, J.P. Morgan Chase & Co.'s (JPM) surged 1.2% toward a record high; the stock has shot up 9.9% amid an 8-day win streak. Elsewhere, shares of Bank of America Corp. (BAC) rose 1.3% toward a 5th straight gain, Citigroup Inc. (C) hiked up 1.5% and Wells Fargo & Co (WFC) advanced 0.9%. The yield on the 10-year Treasury note (link) rose 6.3 basis points toward a six-week high of 1.854% after upbeat data on retail sales. A rise in Treasury yields can help boost bank profits, as it can increase the spread what banks earn on longer-term assets that are funded with shorter-term liabilities. The financial ETF has gained 4.8% over the past three months and the S&P bank ETF has tacked on 4.0%, while the Dow Jones Industrial Average has advanced 4.3%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
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09-13-19 1051ETCopyright (c) 2019 Dow Jones & Company, Inc.