Investor Alert

New York Markets Open in:

Market Pulse Archives

June 26, 2020, 6:22 a.m. EDT

Bank stocks take a hit after Fed requires dividends capped, repurchases suspended

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Financial Select Sector SPDR ETF (XLF)
  • X
    Wells Fargo & Co. (WFC)
  • X
    Bank of America Corp. (BAC)

or Cancel Already have a watchlist? Log In

By Tomi Kilgore

Shares of large banks required to undergo the Federal Reserve's stress tests took a hit in premarket trading Friday, after the Fed voted to require the suspension of stock buybacks and to cap dividends, given the uncertain outlook resulting from the COVID-19 pandemic. Although the banks passed the Fed's tests, the Fed said some banks may have to cut dividends. The SPDR Financial Select Sector ETF /zigman2/quotes/209660484/composite XLF -0.63% fell 1.4%, after rallying 2.7% on Thursday to bounce off a 5-week low. Among the more-active components ahead of the open, shares of Wells Fargo & Co. /zigman2/quotes/203790192/composite WFC -0.67% shed 2.7%, Bank of America Corp. /zigman2/quotes/200894270/composite BAC -1.42% fell 2.3%, Citigroup Inc. /zigman2/quotes/207741460/composite C -0.86% slipped 0.8%, J.P. Morgan Chase & Co. /zigman2/quotes/205971034/composite JPM -0.55% dropped 1.4% and Goldman Sachs Group Inc. /zigman2/quotes/209237603/composite GS -1.76% gave up 3.2%. The selloff comes while futures /zigman2/quotes/210407078/delayed YM00 -0.32% for the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.29% slipped 54 points, or 0.2%.

/zigman2/quotes/209660484/composite
US : U.S.: NYSE Arca
$ 25.08
-0.16 -0.63%
Volume: 35.22M
Aug. 13, 2020 4:00p
loading...
/zigman2/quotes/203790192/composite
US : U.S.: NYSE
$ 25.02
-0.17 -0.67%
Volume: 27.39M
Aug. 13, 2020 4:03p
P/E Ratio
28.60
Dividend Yield
1.60%
Market Cap
$103.78 billion
Rev. per Employee
$392,114
loading...
/zigman2/quotes/200894270/composite
US : U.S.: NYSE
$ 26.35
-0.38 -1.42%
Volume: 55.96M
Aug. 13, 2020 4:00p
P/E Ratio
12.66
Dividend Yield
2.73%
Market Cap
$231.59 billion
Rev. per Employee
$543,289
loading...
/zigman2/quotes/207741460/composite
US : U.S.: NYSE
$ 52.89
-0.46 -0.86%
Volume: 13.82M
Aug. 13, 2020 4:02p
P/E Ratio
9.17
Dividend Yield
3.86%
Market Cap
$111.07 billion
Rev. per Employee
$479,167
loading...
/zigman2/quotes/205971034/composite
US : U.S.: NYSE
$ 102.37
-0.57 -0.55%
Volume: 13.60M
Aug. 13, 2020 4:00p
P/E Ratio
13.79
Dividend Yield
3.52%
Market Cap
$313.72 billion
Rev. per Employee
$497,647
loading...
/zigman2/quotes/209237603/composite
US : U.S.: NYSE
$ 208.39
-3.74 -1.76%
Volume: 2.22M
Aug. 13, 2020 4:00p
P/E Ratio
15.85
Dividend Yield
2.40%
Market Cap
$72.99 billion
Rev. per Employee
$1.34M
loading...
/zigman2/quotes/210407078/delayed
US : U.S.: CBOT
$ 27,734.00
-89.00 -0.32%
Volume: 40,561
Aug. 14, 2020 6:53a
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,896.72
-80.12 -0.29%
Volume: 364.41M
Aug. 13, 2020 5:10p
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.