Financial stocks took a broad hit Wednesday, as investor disappointment over Capital One Financial Corp.'s /zigman2/quotes/204480509/composite COF -1.02% third-quarter results and the biggest drop in benchmark Treasury yields in three months acted as drags on the sector. The SPDR Financial Select Sector ETF /zigman2/quotes/209660484/composite XLF -1.63% fell 1.2% in afternoon trading with 57 of 65 equity components trading lower, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.84% tacked on 0.2%. Capital One's stock tumbled 7.5% to pace the losers even after the financial services company reported third-quarter earnings that rose above expectations, helped by a $770.0 million reserve release. If the reserve release was excluded, the company would have posted a net income decline, and earnings per share would have been reduced by about $1.75. Among other more heavily weighted components of the financial ETF (XLF), shares of Bank of America Corp. /zigman2/quotes/200894270/composite BAC -2.27% shed 1.3%, JPMorgan Chase & Co. /zigman2/quotes/205971034/composite JPM -1.81% gave up 1.9%, Wells Fargo & Co. /zigman2/quotes/203790192/composite WFC -2.37% fell 0.4%, Citigroup Inc. /zigman2/quotes/207741460/composite C -1.65% lost 0.7% and Goldman Sachs Group Inc. /zigman2/quotes/209237603/composite GS -1.24% gave up 1.0%. The yield on the 10-year Treasury note /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y 0.00% fell 8.4 basis points to 1.535%, the biggest one-day drop in yields since July 19, after data showing a decline in durable goods data. Lower long-term yields can eat into bank profits, as that can lower the spread banks earn as they fund longer assets, such as loans, with shorter term liabilities.