Frances Yue

Frances Yue The second-quarter earnings season is off to a volatile start, offering an early test of whether investors' high expectations for corporate profits can hold up.

There are more similarities between the two hedge-fund blowups than one might expect.

The unraveling of the Situational Awareness hedge fund has inspired comparisons with Long-Term Capital Management, a legendary hedge fund that failed in spectacular fashion in 1998.

The breakout to record highs by bank stocks, plus their strong earnings and favorable valuations, suggest more good times ahead for the financial sector.

Financial stocks have been among the market’s best performers this month. The Fed’s next move, however, may determine how much further the rotation can run.

Financial stocks have been among the market's best performers this month, as strong bank earnings, improving capital-markets activity and fading

The financial sector has been on fire of late, as strong earnings, fading concerns about private credit and improving capital-markets activity have

Goldman Sachs was among the big banks that reported strong second-quarter earnings earlier this month. - Michael M. Santiago/Getty Images

U.S. stocks finished sharply higher on Monday as signs of easing U.S.-Iran tensions pushed oil prices lower, reducing concerns about renewed inflation pressures. Falling Treasury yields added another tailwind, particularly for technology and other growth stocks. Investors also welcomed evidence of

U.S. stocks are entering what has historically been the weakest stretch of the year, but unusually bearish investor sentiment could help limit any pullback, according to Ned Davis Research.