Financials Higher on Treasury Rate Outlook -- Financials Roundup
Banks, lenders and other financial companies rose as traders rotated into the sector in light of the outlook for Treasury rates.
The yield on the 10-year Treasury note approached its highest level in a year after reports that China was considering a retreat from Treasury investments.
In response, the SPDR Select Sector Financial exchange-traded fund, which tracks the price of the financial sector in the Standard & Poor's 500, rose.
"A lot of it has to do with long-term rates jumping up, with news reports saying China might potentially eliminate some Treasurys purchases," said Joe Bell, senior market strategist for trading research firm Schaeffer's Investment Research.
The Federal Reserve sent about $80.2 billion to the government last year, and net income totaled $80.7 billion, an $11.7 billion decline from 2016, according to preliminary results in the Fed's annual financial statements.
Berkshire Hathaway promoted Ajit Jain, head of the company's reinsurance operations, and Greg Abel, chief executive of its utility business, to newly created spots on its board of directors and new jobs overseeing operations as Warren Buffett appeared to single them out as contenders to succeed him.
Rob Curran, firstname.lastname@example.org
(END) Dow Jones Newswires
January 10, 2018 16:51 ET (21:51 GMT)