Financial exchange traded funds were higher Tuesday as investors awaited a stock offering from bailed-out insurance giant American International Group (NYSE: AIG), which will be priced after the closing bell.
The U.S. Treasury is expected to sell 15% of its stake in AIG, Reuters reported. The Treasury owns a 92% stake in AIG after the company required a federal bailout in the credit meltdown.
Earlier this month, AIG and the Treasury Department said they planned to offer 300 million AIG shares for a total of nearly $9 billion. [Financial ETFs Watch AIG Offering, 50-Day Average]
Also this month, AIG said its first-quarter earnings fell 85% from the year-ago period.
Financial Select Sector SPDR Fund (NYSEArca: XLF) rose fractionally on Tuesday. The sector ETF fell to its 200-day moving average on Monday. [Financial ETF Hits 200-Day Average as Citi, Banks Weigh]
Financial Select Sector SPDR Fund
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.