Banks, lenders and other financial companies rose as strong economic data were seen motivating further rate hikes from the Federal Reserve.
"Today's upwardly revised growth in second-quarter GDP, along with Action Economics' forecast for further acceleration in the third quarter to a 3.5% clip, support the expectation for an additional rate hike in December," said Sam Stovall, chief investment strategist at CFRA, in a note to clients. "Granted, much will also depend on inflation," he added, predicting the Fed would await some firming in prices.
The "fast money" and traditional "long only" managers differ on the outlook for the financial sector, according to one brokerage. "Financials is the sector with the biggest discrepancy in positioning between hedge funds and mutual funds," said analysts at brokerage Goldman Sachs, in a research note. "At 16%, financials carries the second-largest aggregate weight in large-cap mutual fund portfolios at 141 bp overweight. In contrast, hedge funds have a net exposure of 11% to financials which ranks as their largest underweight..."
Rob Curran, email@example.com
(END) Dow Jones Newswires
August 30, 2017 17:16 ET (21:16 GMT)