Shares of bank and other financial stocks suffered broad declines in premarket trading Thursday, after the restart of quantitative easing (link) by the European Central Bank sent U.S. Treasury yields sliding. The SPDR Financial Select Sector ETF (XLF) fell 0.8% in premarket trading. Among the more active components, shares of Bank of America Corp. (BAC) fell 1.2%, Citigroup Inc. (C) shed 1.2%, J.P. Morgan Chase & Co. (JPM) lost 1.0%, Wells Fargo & Co. (WFC) declined 0.8% and Goldman Sachs Group Inc. (GS) gave up 0.7%. After the ECB's moves, the yield on the 10-year Treasury note declined 6.2 basis points to 1.671%. Lower longer-term yields can hurt bank profits, as it narrows the spread between what banks earn on longer-term assets, such as loans, that are funded with shorter-term liabilities. The financial ETF has gained 18.1% year to date through Wednesday while the Dow Jones Industrial Average has rallied 16.3%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
09-12-19 1641ETCopyright (c) 2019 Dow Jones & Company, Inc.