Sector Snap: Exchange Operators

NEW YORK (AP) — Shares of most stock exchange operators rose Thursday even after an analyst cut his rating on the sector amid a belief that recent gains have outpaced potential improvements to earnings power.

In a research note, BMO Capital markets analyst Michael Vinciquerra said most exchange operators' shares have risen in 2009 and investors are more optimistic about growth potential in the sector. However, Vinciquerra cautioned that optimism is too strong. He noted that stock prices never reflected a downturn in the trading of some investment products on exchanges, so no rebound should be expected and thus priced into the stock.

Despite the downgrade to the sector, shares of IntercontinentalExchange Inc. and Nasdaq OMX Group Inc. both rose in late morning trading. ...