NEW YORK (AP) – Bank stocks are climbing Monday morning as bond yields continue to rise. Bond yields are climbing to their highest levels this year, which points to higher interest rates and bigger profits for banks from lending money. Investors have been selling bonds, pushing yields higher, as they expect the spending plans of president-elect Donald Trump to lead to higher inflation.
The big moves for financial firms are pulling the broader stock market higher. Investors are selling companies that pay big dividends like utilities and phone companies as bonds become more appealing to investors seeking income. The dollar is also rising.
KEEPING SCORE: The Dow Jones industrial average rose 79 points, or 0.4 percent, to 18,926 as of 10:20 a.m. Eastern time. The Standard & Poor’s 500 index picked up 6 points, or 0.3 percent, to 2,170. The Nasdaq composite added 3 points, or 0.1 percent, to 5,240.
BANK BONANZA: Bank stocks continued to surge. They’re rising in part because of the big jump in bond yields since the election. Investors are also pleased at the prospect of looser regulation and bigger profits. Trump’s election could result in big changes to the Dodd-Frank financial reform bill or to the Consumer Financial Protection Bureau. Bank of America rose 98 cents, or 5.1 percent, to $20 and JPMorgan Chase picked up $2.96 percent, or 3.9 percent, to $79.65.
DOING DEALS: South Korean conglomerate Samsung said it will buy Harman International for $8 billion, or $112 a share. Harman makes products for connected cars including audio systems and safety and entertainment features. Its stock jumped $22.08, or 25.2 percent, to $109.73.