U.S. financial stocks rose Friday, as the start of banks' earnings season reignited buying in the sector after its postelection rally had stalled. Shares of J.P. Morgan Chase, Bank of America and Wells Fargo jumped after the banks reported quarterly results. The gains spread to other lenders, sending the KBW Nasdaq Bank index up 0.9%. Financial shares jumped after the November election on expectations for higher U.S. interest rates and a rollback of regulation, helping send major stock indexes to record highs. Between Nov. 8 and Dec. 8, financial stocks in the S&P 500 rose 18%. The sector has been little changed since then, rising less than 0.1%. On Friday, the S&P 500 rose 0.2%–led by a 0.6% rise in the financial sector–and the Nasdaq Composite added 0.5%. The Dow Jones Industrial Average slipped 5.3 points, or less than 0.1%, to 19,886. Stocks soared in the weeks following the election on hopes that the new administration would help accelerate a rise in growth and inflation. But for the past month, U.S. stocks have largely moved sideways, keeping the Dow Jones Industrial Average just shy of the 20000 milestone. Both the blue-chip index and the S&P 500 are on track to post weekly declines.
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