Key Highlights

● Aon reported organic growth for the quarter.

● Its acquisition of USI is expected to close in Q4.

● Financials were among the stronger S&P 500 sectors that day.

● Regional banks slipped as Treasury yields climbed.

Aon (NYSE:AON) rose on Wednesday, October 28, gaining ground on the S&P 500 after its quarterly results showed organic growth and the company gave a timeline for a major acquisition.

The insurance broker's advance came as the financial sector finished among the day's better performers, even as regional banks slipped.

Organic Growth

Aon reported organic growth in the quarter, according to market reports. For brokers, organic revenue growth is the key measure investors watch, because it strips out the effect of acquisitions, divestitures and currency swings and shows how the core business is performing.

Organic growth typically reflects a mix of new business, client retention and pricing in the insurance and reinsurance markets where a broker places coverage.

The USI Deal

Aon also said its acquisition of USI is expected to close in the fourth quarter. USI is a US insurance brokerage and consulting firm, and the deal would add a sizable brokerage operation to Aon's existing business.

A clear closing timeline helps reduce uncertainty for investors, who can begin to factor the combined company's earnings into their expectations. Aon is one of the world's largest professional services firms focused on risk, retirement and health.

Financials Firm, Banks Soft

Financials were among the eight of 11 S&P 500 sectors that rose on Wednesday. Within the group, the picture was mixed. Regional banks slipped modestly as rising long-dated Treasury yields weighed, while Evercore (NYSE:EVR) jumped after a strong quarter and LPL Financial (NASDAQ:LPLA) tumbled after its revenue missed expectations.

Robinhood (NASDAQ:HOOD) also fell after its quarterly profit missed expectations despite record revenue, with its crypto revenue falling sharply from a year earlier.

What to Watch

The S&P 500 rose 21.38 points to 7,743.98, its third straight gain. Technology and energy led, while utilities and real estate lagged as long-dated Treasury yields climbed, with the 10-year pushing past a key psychological threshold.

Mastercard (NYSE:MA) reports before Thursday's open, offering another read on financial stocks, along with Merck (NYSE:MRK) and Caterpillar (NYSE:CAT). Investors will also watch for any update on the USI closing.