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Sector Update: Financial Stocks Softer Late Afternoon

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Financial stocks declined in late Wednesday afternoon trading, with the NYSE Financial Index shedding 0.7% and the State Street Financial Select Sector SPDR ETF (XLF) decreasing 0.4%.

The Philadelphia Housing Index fell 1.8% and the State Street Real Estate Select Sector SPDR ETF (XLRE) lost 1.3%.

Bitcoin (BTC-USD) fell 2.1% to $84,537, and the yield for 10-year US Treasuries jumped 14.1 basis points to 5.11%.

In economic news, Federal Reserve Governor Michael Barr called for further interest rate increases to combat sticky inflation. Barr said "further policy adjustments" will likely be needed to ensure inflation comes down to the 2% target in a timely fashion. Last week, the Fed delivered its first rate hike in just over three years.

Markets are now pricing in a 71% probability that the Fed will lift interest rates again by 25 basis points in October, according to the CME FedWatch tool. That's up from 55% on Tuesday.

The September flash reading of manufacturing conditions from S&P Global rose to a 52-month high of 57 from 53.9 in August, and compared with 53.7 in a Bloomberg survey.

US mortgage applications fell 1.5% for the week ending Sept. 18, compared with a decline of 4.1% in the week prior, as the 30-year fixed-rate mortgage rate increased to 7.12% from 6.97% over the same period.

In corporate news, BlackRock (BLK) is directing more money into large-cap stocks in the US and is shifting some of its AI exposure from industry pioneers toward later adopters, Bloomberg reported, citing an investment outlook. BlackRock shares were down 0.4%.

Blue Owl Capital (OWL) could see its junior loan to Loparex wiped out as Monarch Alternative Capital and General Atlantic lead a roughly $1 billion restructuring that will see them own a majority of the business, Bloomberg reported. Blue Owl shares were falling 2.7%.

A Morgan Stanley (MS) employee accidentally leaked an internal list of more than 100 investment-banking deals the firm is monitoring and pitching in Asia, Bloomberg reported. Morgan Stanley shares were shedding 1%.

Brookfield (BN) is nearing a deal to buy financial crime and compliance specialist Actimize from NICE (NICE) for $2 billion, Sky News reported. Brookfield shares were down 1.7%.

What else is happening in Sectors?

Sectors

Sector Update: Energy Stocks Decline Late Afternoon

Energy stocks were lower late Tuesday afternoon, with the NYSE Energy Sector Index down 0.5% and the State Street Energy Select Sector SPDR ETF (XLE) shedding 1.1%.The Philadelphia Oil Service Sector Index was 0.2% lower, and the Dow Jones US Utilities Index was 0.3% lower.Front-month West Texas Intermediate crude oil fell 1.2% to $94.59 a barrel, and the global benchmark Brent crude contract shed 1.2% to $99.13 a barrel. Henry Hub natural gas futures gained 5.7% to $3.00 per 1 million BTU.In geopolitical news, President Donald Trump told the UN General Assembly that a deal with Iran is possible after the midterm elections, but his other choice is to "annihilate the Islamic Republic," multiple news outlets reported.In corporate news, Marathon Petroleum (MPC) shares were down 3.1% after Jefferies downgraded the stock to hold from buy.Abu Dhabi's XRG is considering taking a stake in the Shell-backed (SHEL) LNG Canada project, Bloomberg reported. Shell shares were up 0.7%.Southern (SO) unit Georgia Power said late Monday it formed a partnership with Alphabet's (GOOGL) Google to advance nuclear energy in the state and provide about $900 million in benefits to consumers. Southern shares were down 0.4%.Fervo Energy (FRVO) said Tuesday it has won two US Department of Energy awards totaling about $20 million to support the development of geothermal projects in Idaho and Nevada. Fervo shares were shedding 2.3%.

$FRVO$MPC$SHEL$SO
Sectors

Sector Update: Healthcare Stocks Rise Late Afternoon

Healthcare stocks rose late Tuesday afternoon, with the NYSE Healthcare Index adding 0.5% and the State Street Health Care Select Sector SPDR ETF (XLV) up 0.7%.The iShares Biotechnology ETF (IBB) climbed 1.8%.In corporate news, Amgen (AMGN) shares rose 4.3% after the firm reported positive topline results from its phase 3 trial of dazodalibep in adults with Sjogren's disease and moderate-to-severe systemic disease activity.Beta Bionics (BBNX) shares gained 4.1% after it reported Tuesday a partnership to integrate its iLet Bionic Pancreas and Mint automated insulin delivery systems with Senseonics' (SENS) Eversense 365 continuous glucose monitoring system. Senseonics shares were up 2.9%.Viking Therapeutics (VKTX) shares surged 35% after the firm said Tuesday VK2735 showed "superior weight maintenance" under less frequent dosing regimens compared with a placebo over 12 weeks in a clinical study.Compass Therapeutics (CMPX) shares fell nearly 32% after the firm said the FDA recommended a new trial showing survival benefit before submitting a biologics license application for tovecimig in patients with previously treated, advanced biliary tract cancer.

$AMGN$BBNX$CMPX$SENS$VKTX
Sectors

Sector Update: Financial Stocks Fall Tuesday

Financial stocks fell Tuesday with the NYSE Financial Index falling 1.3% and the State Street Financial Select Sector SPDR ETF (XLF) dropping 2%.The Philadelphia Housing Index gained 2.6%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) eased 0.2%.Bitcoin (BTC-USD) fell 0.3% to $86,223, and the yield for 10-year US Treasuries was little changed at 4.968%.In economic news, Redbook US same-store sales last week rose 7.6% from a year earlier after an 8.5% increase in the previous week.The Richmond Fed's monthly manufacturing index fell to minus 2 in September from 4 in August, compared with the expectations for 2 in a survey compiled by Bloomberg.The Philadelphia Federal Reserve Bank's monthly nonmanufacturing activity index worsened to minus 22.0 in September from minus 10.6 in August, compared with expectations for an improvement to minus 8.7 in a survey compiled by Bloomberg.In corporate news, funds backed by Apollo Global Management's (APO) Atlas SP Partners face a potential loss of up to 860 million pounds ($1.1 billion) from the collapse of Market Financial Solutions earlier this year, Bloomberg reported, citing court-appointed administrators. Apollo shares fell 2.9%.Goldman Sachs (GS) has emerged as the leading bidder to buy Palmer Square Capital Management, a credit manager that oversees $37 billion, Bloomberg reported. Goldman shares dropped 1%.Better Home & Finance (BETR) former CEO Vishal Garg criticized the company's actions related to his effort to remove five directors from its board. The company's shares rose 5.8%.PayPal Holdings (PYPL) entered into a partnership with Meta (META) that will allow customers to shop and checkout using their Muse AI agents. PayPal shares added 0.5%.

$APO$BETR$GS$PYPL