Surprising jump in construction activity lifts sector; Fed meeting in focus
The U.S. financial sector was higher in early action Tuesday as investors put Monday's pause in the rally behind them and found a bright spot in data that showed housing starts staged an unexpected bounce in February.
The Financial Select Sector SPDR Fund a popular sector exchange-traded fund, was up about 1% at last check. The ETF delivered a strong recovery last week as investors were cheered by news that some big banks were profitable in the first two months of the year. Speculation on mark-to-market accounting and the uptick rule helped fuel the buying.
Housing starts in February rose for the first time in eight months, gaining 22%, the Commerce Department said Tuesday. See Economic Report.
Shares of Citigroup Inc. and American International Group Inc. were among the large-cap financial stocks posting the largest percentage gains on Tuesday. Despite its shares moving higher, AIG continued to feel the backlash over bonuses the insurance giant paid to executives in the financial-products unit that was responsible for the company's near collapse. See related story.
Investors were keeping a close eye on the bond market as the Federal Reserve starts its two-day meeting.
