Shares of banks and other financial institutions rose as traders braced for increased volatility in stock and Treasury markets.

Wall Street fell short of a record following mixed profit reports from big companies. The S&P 500 ended essentially flat Friday, a day after rallying within 0.1% of its all-time high set last month.

Friday was a day to forget for Federal Realty Investment Trust (NYSE: FRT) and its investors. The real estate investment ...