Financial stocks turned lower in premarket trade Friday, after a weaker-than-expected April jobs report sent Treasury yields lower. The SPDR Financial ETF , which was inactive prior to the jobs data, slumped 0.8%. Among some of its more heavily-weighted components, shares of Bank of America Corp. dropped 1.8%, after being down just 0.1% prior to the data. Shares of Citigroup Inc. slumped 1.5%, of J.P. Morgan Chase shed 1.4% and of Wells Fargo & Co. lost 1.4%; just before the data, they were down 0.5%, down 0.4% and up 0.4%, respectively. After data showing nonfarm payrolls increased 160,000 in April, below expectations of 205,000, the yield on the 10-year Treasury note declined 0.017 percentage points to 1.744%. Lower long-term yield can hurt bank earnings as they compress margins banks earn on loans.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News