The KBW Bank Index fell for most of Monday as investors continued to cash in gains from previous rallies, but it closed up 0.81% on advances in utilities after news that China's sovereign wealth fund may invest in the U.S. power company AES Corp.

Raymond James & Associates analyst Anthony Polini wrote in a note Monday that the average stock price for the 40 largest banks and thrifts has advanced nearly 25% since mid-July, so the sector should remain vulnerable to a "healthy round" of profit-taking as the third-quarter earnings "preseason" approaches.

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