Financial stocks traded broadly lower Monday, along with the broader stock market (Bank of America Corp. (BAC) dropped 2.9%, Citigroup Inc. (C) shed 2.7%, Wells Fargo & Co. (WFC) gave up 1.9% and J.P. Morgan Chase & Co. (JPM) slid 2.3%. Berkshire Hathaway Inc.'s Class B shares (BRKA) fell 1.5% ahead of the open, after Warren Buffett's investment vehicle reported over the weekend a second-quarter profit that missed expectations ( ), according to FactSet. The yield on the 10-year Treasury note declined 7.1 basis points to 1.784%, the lowest yield seen since November 2016. Lower longer-term rates could hurt bank earnings, because it narrows the spread between what banks earn on longer-term assets, such as loans, and what they pay on shorter-term liabilities.), as fears of an escalation in the U.S.-China trade war boosted safe-haven Treasurys ( ), which sent yields to 2 1/2-year lows. The SPDR Financial Select Sector ETF (XLF) slumped 2.1% in premarket trading to put it on track for a sixth straight loss, which would be the longest losing streak since the 8-day stretch ending Dec. 24. The selloff comes as futures for the S&P 500 fell 1.5%. Among the financial ETF's (XLF) more-active components, shares of
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
August 05, 2019 08:57 ET (12:57 GMT)
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