Shares of banks and other financial institutions fell, but not by as much as the broad market, after strong earnings from one bellwether.

Shares of Wall Street bank Goldman Sachs Group rallied after the bank posted far stronger-than-expected first-quarter earnings, boosted by a rebound in investment banking as deal flow improved.

"So far quarterly reports for big banks have looked good, yet banks seem to be facing some net interest income challenges as depositors are demanding higher rates that are in turn affecting net interest income and net income margins," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.

"Whether it's mergers-and-acquisitions, trading, or just random places where they can charge some fees."

Shares of discount brokerage Charles Schwab rallied after it reported first-quarter earnings ahead of Wall Street targets, quelling worries about the impact of rate changes on cash-sorting operations.

Shares of M&T Bank rallied despite a hit to its quarterly earnings from its exposure to troubled commercial real estate. M&T's plans to pull back from commercial real estate impressed investors. "When regional banks start to report, it'll be interesting to see if we have any hiccups there as a result of commercial real-estate weakness," said Joyce.

H&R Block said it was experiencing technology outages, preventing thousands of last-minute tax filers from sending in their returns.

Global buyout firm CVC Capital Partners plans to list its shares in Amsterdam, making a second attempt to go public in less than six months.

Write to Rob Curran at

(END) Dow Jones Newswires

04-15-24 1745ET