Financial stocks were advancing premarket Tuesday, with The Financial Select Sector SPDR Fund (XLF) 0.3% higher.

The Direxion Daily Financial Bull 3X Shares (FAS) was up 1% and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 0.9% lower.

B. Riley Financial (RILY) shares were up over 22% after the company said it has filed its quarterly report on Form 10-Q for the three months ended June 30, 2024.

Allstate (ALL) and its Arity unit are facing a lawsuit filed by Texas Attorney General Ken Paxton over their alleged violation of the state's data privacy and security laws, according to a statement from the Attorney General's office. Allstate shares were up over 1% pre-bell.

Ares Management (ARES) shares were 0.8% higher after the company said it had closed its sixth commingled European direct lending fund, Ares Capital Europe VI, with total commitments of 17.10 billion euros ($17.50 billion).