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Sept. 12, 2019, 9:07 a.m. EDT

Bank stocks dive as ECB's restart of QE tanks Treasury yields

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By Tomi Kilgore

Shares of bank and other financial stocks suffered broad declines in premarket trading Thursday, after the restart of quantitative easing by the European Central Bank sent U.S. Treasury yields sliding. The SPDR Financial Select Sector ETF /zigman2/quotes/209660484/composite XLF +0.25% fell 0.8% in premarket trading. Among the more active components, shares of Bank of America Corp. /zigman2/quotes/200894270/composite BAC +0.30% fell 1.2%, Citigroup Inc. /zigman2/quotes/207741460/composite C +0.20% shed 1.2%, J.P. Morgan Chase & Co. /zigman2/quotes/205971034/composite JPM +0.17% lost 1.0%, Wells Fargo & Co. /zigman2/quotes/203790192/composite WFC +0.73% declined 0.8% and Goldman Sachs Group Inc. /zigman2/quotes/209237603/composite GS +0.03% 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 /zigman2/quotes/210598065/realtime DJIA -0.95% has rallied 16.3%.

Read the full story:
Dow logs 7th gain in a row on renewed trade optimism, ECB stimulus

/zigman2/quotes/209660484/composite
US : U.S.: NYSE Arca
$ 28.11
+0.07 +0.25%
Volume: 40.53M
Oct. 18, 2019 8:00p
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/zigman2/quotes/200894270/composite
US : U.S.: NYSE
$ 30.35
+0.09 +0.30%
Volume: 48.88M
Oct. 18, 2019 6:30p
P/E Ratio
11.24
Dividend Yield
2.37%
Market Cap
$282.51 billion
Rev. per Employee
$543,289
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/zigman2/quotes/207741460/composite
US : U.S.: NYSE
$ 69.74
+0.14 +0.20%
Volume: 10.42M
Oct. 18, 2019 6:30p
P/E Ratio
9.26
Dividend Yield
2.93%
Market Cap
$157.55 billion
Rev. per Employee
$479,167
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/zigman2/quotes/205971034/composite
US : U.S.: NYSE
$ 120.56
+0.21 +0.17%
Volume: 10.42M
Oct. 18, 2019 6:30p
P/E Ratio
11.90
Dividend Yield
2.99%
Market Cap
$385.49 billion
Rev. per Employee
$497,647
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/zigman2/quotes/203790192/composite
US : U.S.: NYSE
$ 49.97
+0.36 +0.73%
Volume: 21.20M
Oct. 18, 2019 6:30p
P/E Ratio
10.79
Dividend Yield
4.08%
Market Cap
$220.17 billion
Rev. per Employee
$392,114
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/zigman2/quotes/209237603/composite
US : U.S.: NYSE
$ 206.52
+0.06 +0.03%
Volume: 2.21M
Oct. 18, 2019 6:30p
P/E Ratio
9.24
Dividend Yield
2.42%
Market Cap
$74.26 billion
Rev. per Employee
$1.34M
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
26,770.20
-255.68 -0.95%
Volume: 293.61M
Oct. 18, 2019 5:08p
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