NEW YORK (
) -- Financial stocks rallied Tuesday on positive economic data.
The Financial Select Sector SPDR
, a widely-followed exchange traded fund that tracks financial services stocks was up 20 cents, to $14.23.
The biggest winner this afternoon was
(MTB - Get Report)
. The regional bank's stock was up $4.14, to $89.59, on rumors that it was in merger discussions with
(C - Get Report)
stock was up four cents to $3.90 after a
judge said she wasn't ready
to approve Citi's $75 million settlement with the SEC for allegedly failing to disclose $40 billion in subprime-related holdings to shareholders.
The PMI Group's
shares were up 16%, to $3.01, after John Paulson disclosed that he added a stake in the company.
Losers of the day include
. Fannie Mae was down 1.7%, to 36 cents a share, while Freddie Mac was down 2.13%, to 39 cents a share, as the
over the future of the government's role in housing markets.
It was also a bad day for
(HALL - Get Report)
. Shares were down 59 cents, to $8.89, after a research note said that underwriting results were responsible for an operating loss for the insurer last quarter.
Written by Maria Woehr in New York