Banks, lenders and other financial companies fell as optimism about earnings later this week faded. "Weak loan growth and trading activity, along with hurricane-related losses, will weigh on financials results despite another Fed hike and higher interest rates," said analysts at brokerage Goldman Sachs, in a research note. One money manager noted how volatile rate expectations have been this year, helping to explain the erratic behavior of financial stocks. "It's unbelievable how many times expectations for hikes went up and down this year," said Lorenzo Di Mattia, manager of hedge fund Sibilla Global Fund, in a note to clients. "Looking at the probability for a December hike, it went up and down from around 20% to around 60% seven times, all in 2017! That's how many times expectations switched from deflation/slow growth to reflation this year." Shares of subprime lender OneMain rallied after The Wall Street Journal reported the company is pursuing a sale.
-Rob Curran, firstname.lastname@example.org
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(END) Dow Jones Newswires
October 09, 2017 16:36 ET (20:36 GMT)