NEW YORK (
American International Group
was among few winners of the financial sector Friday after a report the government was planning to shed its stake in the insurer.
shares rose nearly 4% after a
report the Treasury Department is considering a two-year plan to convert $47 billion of preferred stock into common shares for sale on the open market, citing a person with knowledge of the discussions.
If AIG gives it approval to the plan and there is sufficient investor demand, the Treasury Department plan could be announced as early as the fourth quarter, the person told
. Following the report, AIG shares were climbing 3.8% to $44.87.
Also on the winning side,
rose 3.7% to $48.48 after the company late Thursday posted a first-quarter profit of 73 cents a share as revenue rose 11% to $6.6 billion. That beat the Thomson Reuters average estimate for earnings of 64 cents a share on revenue of $6.34 billion.
Fellow credit-card issuer
also notched a strong first-quarter performance as its provisions for loan losses fell sharply, and its shares were up 2.5% to $46.69.
PNC Financial Services
also traded to the upside after FBR Capital Markets analyst Paul Miller reiterated his outperform rating on the stock and boosted his price target to $80 from $65, noting that the bank had "the cleanest beat to
earnings per shares of its peers."
Miller also added PNC Financial to FBR Capital's Top Picks list, displacing
Bank of America
. PNC shares were up 1% to $69.47.
The Travelers Companies
was trading in the red after the
component notched a first-quarter profit of $1.22 a share, which was below the Thomson Reuters average estimate of $1.36 a share.
reaffirmed its full-year earnings guidance of $5.20 to $5.55 a share, although that's below the consensus target of $5.73. Travelers shares were down 1.2% to $53.17.
Most major U.S. bank stocks were also trading lower, one day after
Bank of America lost 0.8% to $18.39,
was down 0.8% to $157.81,
fell 0.7% to $33.36,
slipped 0.5% to $31.75, and
dipped 0.2% to $4.86.
shares, meanwhile, were flat at $44.74.
-- Written by Robert Holmes in Boston
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