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July 30, 2020, 8:40 a.m. EDT

Bank stocks fall as Fed's dovish message pulls down Treasury yields

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By Tomi Kilgore

Bank stocks were broadly lower Thursday, to underperform the broader stock market indicators, as the 10-year Treasury yield fell in 3-month lows in the wake of Federal Reserve Chairman Jerome Powell's dovish message. The SPDR Financial Select Sector ETF /zigman2/quotes/209660484/composite XLF -0.20% fell 1.5% in premarket trading, while futures /zigman2/quotes/210407078/delayed YM00 -0.60% for the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.88% gave up 223 points, or 0.9%. Among the sectors more heavily weighted members, shares of J.P. Morgan Chase & Co. /zigman2/quotes/205971034/composite JPM -0.21% shed 1.5%, Bank of America Corp. /zigman2/quotes/200894270/composite BAC -0.55% gave up 1.5%, Wells Fargo & Co. /zigman2/quotes/203790192/composite WFC +0.08% lost 1.8% and Citigroup Inc. /zigman2/quotes/207741460/composite C -1.47% shed 1.8%. The yield on the 10-year Treasury note /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y -2.11% fell 2.4 basis points to 0.553%, the lowest yield seen since April 21, after Powell said Wednesday that recent data suggests a slowing in the pace of the recovery, as COVID-19 cases increase. Lower long-term yields can hurt bank profits, as that narrows the spread between what banks earn on longer-term assets, such as loans, which are funded by shorter-term liabilities.

/zigman2/quotes/209660484/composite
US : U.S.: NYSE Arca
$ 24.68
-0.05 -0.20%
Volume: 61.71M
Sept. 18, 2020 4:00p
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/zigman2/quotes/210407078/delayed
US : U.S.: CBOT
$ 27,437.00
-165.00 -0.60%
Volume: 21,974
Sept. 21, 2020 1:39a
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,657.42
-244.56 -0.88%
Volume: 703.89M
Sept. 18, 2020 5:15p
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/zigman2/quotes/205971034/composite
US : U.S.: NYSE
$ 98.35
-0.21 -0.21%
Volume: 20.12M
Sept. 18, 2020 4:00p
P/E Ratio
13.25
Dividend Yield
3.66%
Market Cap
$299.73 billion
Rev. per Employee
$497,647
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/zigman2/quotes/200894270/composite
US : U.S.: NYSE
$ 25.21
-0.14 -0.55%
Volume: 94.06M
Sept. 18, 2020 4:00p
P/E Ratio
12.11
Dividend Yield
2.86%
Market Cap
$218.42 billion
Rev. per Employee
$543,289
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/zigman2/quotes/203790192/composite
US : U.S.: NYSE
$ 25.13
+0.02 +0.08%
Volume: 115.15M
Sept. 18, 2020 4:03p
P/E Ratio
28.72
Dividend Yield
1.59%
Market Cap
$103.54 billion
Rev. per Employee
$392,114
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/zigman2/quotes/207741460/composite
US : U.S.: NYSE
$ 44.86
-0.67 -1.47%
Volume: 33.20M
Sept. 18, 2020 4:02p
P/E Ratio
7.78
Dividend Yield
4.55%
Market Cap
$93.39 billion
Rev. per Employee
$479,167
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/zigman2/quotes/211347051/realtime
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
0.69
-0.01 -2.11%
Volume: 0.00
Sept. 21, 2020 2:48a
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