Financials Keep Market from Plunging Even Deeper

This post was originally published on this site — Consumers are back. Enough, anyway, to keep financials afloat while the rest of the market tumbles. 

Following nonfarm payrolls on Friday, Capital One Financial Corporation (NYSE:COF) rose 5%, the biggest mover among peers and reaching the highest level since June. Discover Financial Services (NYSE:DFS) rose 2.7%, while Synchrony Financial (NYSE:SYF) increased 3.4%.

The August payroll report showed an increase of 1.37 million jobs, while the unemployment rate fell to 8.4%, the lowest since March, according to Labor Department figures. 

The financial sector rallied to its 200-day moving average at the start of the session, with the payrolls report pointing to the restoration of some consumption power, helping to keep purveyors of credit services, regional banks, and money center banks in the green while some insurers, investment banks, and providers of market data are on the defensive, said.   

Financials rose 0.7%, the best-performing S&P sector on Friday afternoon and one of only three still in the green.

AIG (NYSE:AIG) was up 1.6%, JPMorgan (NYSE:JPM) rose 1.8% and Travelers (NYSE:TRV) increased 1.1%.