Shares of banks and other financial institutions rose as earnings in the sector continued to surpass Wall Street targets.

Charles Schwab shares rallied after the discount brokerage posted third-quarter earnings ahead of the average analyst estimate, quelling concerns about an outflow of money from the accounts in which customers typically park cash.

"Net interest income was weaker but the stock is up on the news that less funds are being withdrawn from the bank to be placed in higher interest vehicles," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.

"With so many banks paying nominal yields, a number of folks are taking those same dollars and putting them into...money market accounts that pay higher yields. So you're seeing a squeeze to earnings, at the same time, you're not seeing as much of that now as you had in the last quarter," Joyce said.

Shares of Schwab are still deep in the red for the year to date, with a loss of more than 30%.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

10-16-23 1746ET