Bank stocks took a dive in premarket trading Friday, as Treasury yields sank in the wake of disappointing government jobs data. J.P. Morgan Chase & Co.'s stock /zigman2/quotes/205971034/composite JPM +1.55% fell 1.6% to pace the Dow Jones Industrial Average's /zigman2/quotes/210598065/realtime DJIA -0.38% early decliners, followed by the 1.4% drop in Goldman Sachs Group Inc.'s stock /zigman2/quotes/209237603/composite GS +0.13% . The implied price declines of those two stocks would shave about 50 points off the Dow's price, while Dow futures /zigman2/quotes/210407078/delayed YM00 -0.05% declined 16 points, or 0.1%. Elsewhere, shares of Bank of America Corp. /zigman2/quotes/200894270/composite BAC +0.83% were down 1.7%, Citigroup Inc. /zigman2/quotes/207741460/composite C -1.47% shed 1.4% and Wells Fargo & Co. /zigman2/quotes/203790192/composite WFC +0.74% gave up 1.3%, while the SPDR Financial Select Sector ETF /zigman2/quotes/209660484/composite XLF -0.19% was down 1.1%. The yield on the 10-year Treasury note /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y 0.00% dropped 4.7 basis points to a 2-month low of 1.515%, after the U.S. added a lot less jobs than expected and the unemployment rate surprisingly rose. Lower longer-term interest rates can hurt bank profits, as it narrows the spread they can earn on longer-term assets, like loans, that are funded with shorter-term liabilities.
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