Financial stocks were higher in late Tuesday trading, with the NYSE Financial Index adding 0.9% and the Financial Select Sector SPDR Fund (XLF) rising 0.5%.

The Philadelphia Housing Index shed 0.6%, and the Real Estate Select Sector SPDR Fund (XLRE) added 0.4%.

Bitcoin (BTC-USD) fell 0.5% to $84,171, and the yield for 10-year US Treasuries fell 4.1 basis points to 4.323%.

In economic news, New York manufacturing activity improved more than expected this month, while the outlook turned negative for the first time since 2022, a survey by the Federal Reserve Bank of New York showed. The Empire State Manufacturing Survey's general business conditions index improved to minus 8.1 in April from minus 20 in March. The consensus was for a rise to minus 13.5, according to a survey compiled by Bloomberg.

In corporate news, Barclays (BCS) is in advanced talks to sell a stake in its payments business to Brookfield Asset Management (BAM), Bloomberg reported. Barclays shares rose 3.1%, and Brookfield added 0.1%.

PNC Financial Services (PNC) reported Q1 earnings of $3.51 per diluted share, up from $3.10 a year earlier and above the FactSet consensus of $3.38. Its shares rose 0.4%.

Bank of America's (BAC) Q1 results surpassed Wall Street's projections as record trading revenue helped offset lower investment banking fees, while the lender said it doesn't forecast a US recession this year. Its shares popped 3.5%.

Citigroup (C) logged stronger-than-expected Q1 results that were buoyed by double-digit revenue gains in equity trading and investment banking, while the lender said the global economic outlook has become "more negative." Citi shares were up 2%.