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

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

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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 +1.25% 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 +2.78% shed 2.7%, Bank of America Corp. /zigman2/quotes/200894270/composite BAC +1.57% fell 2.3%, Citigroup Inc. /zigman2/quotes/207741460/composite C +2.40% slipped 0.8%, J.P. Morgan Chase & Co. /zigman2/quotes/205971034/composite JPM +0.92% dropped 1.4% and Goldman Sachs Group Inc. /zigman2/quotes/209237603/composite GS +2.13% gave up 3.2%. The selloff comes while futures /zigman2/quotes/210407078/delayed YM00 +0.44% for the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.95% slipped 54 points, or 0.2%.

/zigman2/quotes/209660484/composite
US : U.S.: NYSE Arca
$ 36.49
+0.45 +1.25%
Volume: 42.94M
June 24, 2021 4:00p
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/zigman2/quotes/203790192/composite
US : U.S.: NYSE
$ 45.18
+1.22 +2.78%
Volume: 27.95M
June 24, 2021 4:05p
P/E Ratio
31.32
Dividend Yield
0.89%
Market Cap
$181.71 billion
Rev. per Employee
$299,217
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/zigman2/quotes/200894270/composite
US : U.S.: NYSE
$ 40.83
+0.63 +1.57%
Volume: 37.16M
June 24, 2021 4:00p
P/E Ratio
17.47
Dividend Yield
1.76%
Market Cap
$344.49 billion
Rev. per Employee
$445,624
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/zigman2/quotes/207741460/composite
US : U.S.: NYSE
$ 71.32
+1.67 +2.40%
Volume: 23.90M
June 24, 2021 4:02p
P/E Ratio
9.39
Dividend Yield
2.86%
Market Cap
$143.97 billion
Rev. per Employee
$423,538
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/zigman2/quotes/205971034/composite
US : U.S.: NYSE
$ 152.51
+1.39 +0.92%
Volume: 13.73M
June 24, 2021 4:00p
P/E Ratio
12.10
Dividend Yield
2.36%
Market Cap
$457.49 billion
Rev. per Employee
$492,730
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/zigman2/quotes/209237603/composite
US : U.S.: NYSE
$ 368.75
+7.70 +2.13%
Volume: 2.72M
June 24, 2021 4:00p
P/E Ratio
9.17
Dividend Yield
1.36%
Market Cap
$122.84 billion
Rev. per Employee
$1.31M
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/zigman2/quotes/210407078/delayed
US : U.S.: CBOT
$ 34,232.00
+150.00 +0.44%
Volume: 7,303
June 24, 2021 10:57p
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
34,196.82
+322.58 +0.95%
Volume: 279.38M
June 24, 2021 5:29p
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