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July 8, 2021, 8:36 a.m. EDT

Financial stocks set for broad selloff as Treasury yields keep falling

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By Tomi Kilgore

The financial sector is bracing for a broad selloff Thursday, amid weakness in the broader market and continued declines in Treasury yields. The SPDR Financial Select Sector ETF /zigman2/quotes/209660484/composite XLF -2.03% slumped 1.8% in premarket trading, enough to pace the declines in all of the SPDR ETFs tracking the S&P 500's /zigman2/quotes/210599714/realtime SPX -1.48% 11 sectors. Among the financial ETF's most heavily weighted components, shares of Berkshire Hathaway Inc. /zigman2/quotes/200060694/composite BRK.B -0.95% fell 1.4%, J.P. Morgan Chase & Co. /zigman2/quotes/205971034/composite JPM -4.18% shed 2.1%, Bank of America Corp. /zigman2/quotes/200894270/composite BAC -3.12% dropped 2.6%, Wells Fargo & Co. /zigman2/quotes/203790192/composite WFC -1.90% gave up 2.7% and Citigroup Inc. /zigman2/quotes/207741460/composite C -2.14% slid 2.4%. The declines come as S&P 500 futures /zigman2/quotes/209948968/delayed ES00 -1.31% slumped 1.4% and the yield on the 10-year Treasury note /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y +4.20% was down 4.8 basis points to a 5-month low of 1.271%, amid concerns over future economic growth. Falling longer-term interest rates can hurt bank profits, as they reduce the spread 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
$ 40.00
-0.83 -2.03%
Volume: 48.02M
Jan. 18, 2022 3:08p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,593.91
-68.94 -1.48%
Volume: 1.81B
Jan. 18, 2022 3:08p
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/zigman2/quotes/200060694/composite
US : U.S.: NYSE
$ 321.06
-3.07 -0.95%
Volume: 3.17M
Jan. 18, 2022 3:08p
P/E Ratio
8.61
Dividend Yield
N/A
Market Cap
$723.40 billion
Rev. per Employee
$746,325
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/zigman2/quotes/205971034/composite
US : U.S.: NYSE
$ 151.29
-6.60 -4.18%
Volume: 22.52M
Jan. 18, 2022 3:08p
P/E Ratio
9.88
Dividend Yield
2.64%
Market Cap
$466.61 billion
Rev. per Employee
$497,080
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/zigman2/quotes/200894270/composite
US : U.S.: NYSE
$ 46.42
-1.50 -3.12%
Volume: 40.66M
Jan. 18, 2022 3:08p
P/E Ratio
13.91
Dividend Yield
1.81%
Market Cap
$392.10 billion
Rev. per Employee
$441,352
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/zigman2/quotes/203790192/composite
US : U.S.: NYSE
$ 56.96
-1.11 -1.90%
Volume: 27.38M
Jan. 18, 2022 3:08p
P/E Ratio
11.45
Dividend Yield
1.40%
Market Cap
$225.61 billion
Rev. per Employee
$306,881
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/zigman2/quotes/207741460/composite
US : U.S.: NYSE
$ 65.50
-1.43 -2.14%
Volume: 17.48M
Jan. 18, 2022 3:08p
P/E Ratio
6.51
Dividend Yield
3.10%
Market Cap
$132.81 billion
Rev. per Employee
$381,305
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/zigman2/quotes/209948968/delayed
US : U.S.: CME
$ 4,594.00
-60.75 -1.31%
Volume: 1.75M
Jan. 18, 2022 1:58p
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/zigman2/quotes/211347051/realtime
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
1.87
+0.08 +4.20%
Volume: 0.00
Jan. 18, 2022 3:08p
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