Brokers and Financials Feel the Benefit of Higher Rates, Gold Falls

With the Federal Reserve confirming that it will end its asset purchase program, shares in both the financials and brokerage firms were the beneficiaries, as the yields on the 10 year Government bonds spiked higher following the release. The 10 year bond moved from a 2.28 to a 2.36 percent yield immediately following the news, with shares of TD Ameritrade

and Schwab

popping on the release. Brokerage firms will likely benefit from higher rate environments since these firms make money on float. Financials moved higher as well, although they have subsequently backed off. Shares in the Financial ETF

are now slightly lower on the day. Gold futures fell as the dollar strengthened, with December Gold trading 1.5 percent at 1210.